Hunter Business Finance v Australian Business and Equipment Finance

Hunter Business Finance (HBF) and Australian Business and Equipment Finance (ABEF) were involved in a dispute that was heard in the Supreme Court of New South Wales. The dispute centred around allegations of misuse of confidential information, breach of fiduciary duties, and contractual obligations between the two parties. Specifically, HBF accused ABEF of breaching their contractual relationship by using confidential information to solicit HBF's clients and by failing to disclose material facts that affected the contractual relationship. HBF sought various equitable and legal remedies, including an injunction and damages for breach of contract.

The primary legal issues before the court were whether relief against the alleged misuse of confidential information should be granted despite the existence of a contractual term, whether commission-only agents such as ABEF owe fiduciary obligations to their principal, and whether it was appropriate to order an account in aid of common law rights. Additionally, the court had to determine whether ABEF had breached the contract and, if so, the extent of the damages. The court also had to decide whether an enquiry into damages should be conducted before a Master.

The court held that ABEF's use of confidential information was a clear breach of their contractual obligations and fiduciary duties. The court emphasised that the contractual term prohibiting the use of confidential information for personal gain did not preclude the application of equitable principles to prevent such abuse. Furthermore, the court found that commission-only agents, such as ABEF, do owe fiduciary duties to their principal, which include the duty not to use confidential information for personal advantage. The court granted an account in aid of common law rights to ascertain the damages, and it determined that ABEF had indeed breached the contract. The court ruled that an enquiry into damages should be conducted before a Master to ensure a fair assessment of the loss suffered by HBF.