Plus One International Pty Ltd v Ching (No 3)

The case of Plus One International Pty Ltd v Ching (No 3) involved a dispute between the Plaintiff, Plus One International, and the Defendants, Ching, over the alleged breach of contract and equitable obligations by the Defendants. The Plaintiff alleged that the Defendants, who were former employees, breached their contractual and fiduciary duties by using confidential information, including client contacts, to establish a competing business. The matter was heard in the Supreme Court of Queensland. The primary legal issues the court had to determine were whether the Defendants breached their implied contractual duties of fidelity and confidentiality, and whether they breached their equitable obligations of confidence and fiduciary duties. The court also had to consider whether the Plaintiff was entitled to an injunction against the Defendants' use of confidential information and client contacts.

The court found that the Defendants breached their implied contractual duties of fidelity and confidentiality by using confidential information to establish a competing business. The court noted that while there was no written employment contract, the Defendants' duties were implied based on their roles and the nature of their employment. The court held that the Defendants' use of confidential information to start a competing business constituted a breach of their implied duties. In addition, the court determined that the Defendants breached their equitable obligations of confidence by misappropriating confidential information. The court found that the equitable duty persisted despite the existence of equivalent contractual duties, and the Defendants were liable for breach of confidence. Furthermore, the court considered the Defendants' fiduciary duties but found that, given their position in the hierarchy of the business, no fiduciary duty arose. The court concluded that the Plaintiff was entitled to an injunction against the Defendants' use of confidential information and client contacts.

The court's final orders included an injunction preventing the Defendants from using the Plaintiff's confidential information and client contacts, and an account of profits to determine the Defendants' gains from the breach. The court also ordered the Defendants to deliver up any documents and information that contained the Plaintiff's confidential information. The court's decision emphasised the importance of protecting confidential information and the potential consequences of breaching implied and equitable duties.