Agtek Ltd v Bayquip Agricultural Ltd HC Tauranga CIV-2011-470-91

[2011] NZHC 92

IN THE HIGH COURT OF NEW ZEALAND TAURANGA REGISTRY

CIV-2011-470-91

BETWEEN  AGTEK LTD Applicant

ANDBAYQUIP AGRICULTURAL LTD Respondent

Hearing:         (on the papers) Judgment:        11 February 2011

JUDGMENT OF BREWER J

SOLICITORS

Tompkins Wake (Hamilton) for Applicant

AGTEK LTD V BAYQUIP AGRICULTURAL LTD HC TAU CIV-2011-470-91 11 February 2011

[1]     The applicant has made application without notice for an interlocutory injunction.

[2]      The essential allegation is that the respondent has confidential information of the applicant communicated to the respondent by the applicant during the course of a dealership relationship. This involved agricultural and horticultural equipment.

[3]      The dealership has ended and a dispute has arisen between the parties as to the price the applicant should pay to the respondent for the repurchase of dealership products.  Mr Philip Matthews, as agent of the respondent, has threatened to disclose arguably confidential information to the public if the applicant does not agree to pay the monies demanded by the respondent.

[4]      An undertaking as to damages has been filed by the applicant.

[5]      I am satisfied that interlocutory injunctive relief should be granted. There is a series case to be argued as to whether information supplied by the applicant to the respondent is confidential information.  The balance of convenience clearly favours the granting of interim relief (the disclosure of pricing information in particular could do grave damage to the applicant’s business whereas withholding the information would not damage the respondent’s business).  I am also satisfied when considering this aspect that the likely damage to the applicant’s business would not properly be compensatable by damages.

[6]      Accordingly, I make the following orders:

(a)      Bayquip  Agricultural  Ltd,  its  directors  and  Mr  Philip  Matthews personally are prohibited from disclosing any financial information communicated by or on behalf of Agtek Ltd pursuant to the dealership relationship which existed between Agtek Ltd and Bayquip Agricultural Ltd.  This information includes, but is not limited to, the dealer net prices and margins for Goldoni tractors and other products subject to the dealership relationship;

(b)The following paragraphs of the applicant’s supporting affidavits are to be kept confidential to the parties because they are commercially

sensitive:

(i)	Paragraph 20 of the affidavit of Gayne Jon Carroll;
(ii)	Paragraphs 6, 24-25 and exhibit ‘A’ of the affidavit of Richard Devon Stone.
(c)	Agtek	Ltd  is  to  serve  copies  of  its  documents  filed  in  this

interlocutory proceeding on Bayquip Agricultural Ltd, its directors and on Mr Matthews personally as soon as possible.  Leave is given to effect service by facsimile and/or by email.

[7]      The applicant is to commence the substantive proceeding within 10 working days of the date hereof.

[8]      The injunctive orders made herein are to inure until further order of the

Court.

[9]      Leave is reserved to the respondent, its directors and Mr Philip Matthews to apply to set aside the injunctive orders at any time upon giving three days’ notice to the applicant.

[10]     Costs are reserved.

Brewer J