Matthews v Clifton

In the Federal Court, Matthews, the liquidator of two companies, sought an order for possession of computers belonging to the companies, which were in the possession of receivers and managers. The receivers and managers, as well as other parties, filed a cross-claim seeking protection for confidential information contained on the computers. The primary legal issue was whether the cross-claimants were entitled to protection of their confidential information and if so, what form that protection should take. Additionally, the court needed to determine whether the liquidator was entitled to possession of the computers.

The court found that the cross-claimants had made a valid claim for the protection of their confidential information. The court held that the equitable principle of protecting confidential information applied in this case, and that the receivers and managers had a duty to safeguard such information. The court rejected the liquidator’s principal contentions regarding the application for winding up the companies and possession of the computers. The court considered that the liquidator’s application for a court-ordered winding up was not necessarily required under the circumstances and deferred making final orders until the cross-claimants proposed specific orders for the inspection and identification of confidential information on the computers. The court also directed the parties to confer and agree on these orders before final orders were made.

The court ordered that the cross-claimants prepare specific minutes outlining the proposed orders for an inspection and identification regime of the confidential information on the computers. These orders were to be provided by 6 May 2014. The parties were directed to confer and agree on these orders by 9 May 2014, with final orders to be deferred until this process was completed.