Karas v LK Law Pty Ltd

In the case of Karas v LK Law Pty Ltd, the appellant, Mr Karas, sought leave to appeal an interlocutory decision that refused an injunction preventing the use of confidential information. The respondents, LK Law Pty Ltd, opposed the appeal. The legal issues before the court were whether there existed a prima facie case for confidentiality, the proper approach to the defence of iniquity to a claim of confidentiality on an interlocutory application, and if leave to appeal should be granted. The court found that the appellant had established a prima facie case for confidentiality and that the primary judge had erred in considering case management as a basis for rejecting the claim to confidentiality. However, the balance of convenience did not weigh in favour of granting the relief sought, and therefore, the appeal was dismissed.

The court emphasised that matters of case management were procedural and could not be a basis for rejecting a claim to confidentiality. The court recognised that if there was a sufficiently arguable claim to confidentiality in the information, the claim could be determined concurrently with the substantive claim brought on the basis of access to that information. The court held that provisional receipt of information may be possible. In short, the precise relief sought may be refused by reason of the availability of procedural orders that may adequately preserve the confidentiality in all the circumstances. The court granted leave to appeal but dismissed the appeal on the basis of the findings. The reasons for judgment were suppressed from publication on the grounds specified in s 37AG(1)(a) of the Federal Court of Australia Act 1976 (Cth) and otherwise kept confidential until the date specified in the orders.

The court ordered that the respondents' interlocutory application filed on 15 February 2023 be dismissed, the appeal be dismissed, and the reasons for judgment provided to the parties be suppressed from publication on the grounds specified in s 37AG(1)(a) of the Federal Court of Australia Act 1976 (Cth) and otherwise kept confidential until the date specified in the orders. Any application for ongoing suppression or confidentiality orders affecting the Reasons or any part of them was to be filed on or before 4.00pm (ACDT) on 23 February 2023. The appellant was ordered to pay the costs of and incidental to the appeal. The court held that the appeal should be dismissed, and the reasons for judgment were suppressed from publication and kept confidential until the date specified in the orders.