Internet Traders Ltd v Williams

[2015] NZHC 1809

IN THE HIGH COURT OF NEW ZEALAND TAURANGA REGISTRY

CIV-2014-470-158 [2015] NZHC 1809

BETWEEN

INTERNET TRADERS LIMITED

First Plaintiff

IT PHARMACEUTICAL SUPPLIES LIMITED

Second Plaintiff

JOHN ROULSTON HEALE Third Plaintiff

AND

NICOLE JEAN WILLIAMS First Defendant

GLENCOVE (2014) LIMITED Second Defendant

TENTACLE ENT ERPRISES LIMITED Third Defendant

KIWIPHARMA LIMITED Fourth Defendant

Hearing:	8 July 2015 (in Whangarei) 9 July 2015 (in Auckland)
Appearances:	J P Temm and K J Patterson for Plaintiffs R E Harrison QC for Defendants
Judgment:	15 July 2015
Reasons:	3 August 2015

REASONS FOR JUDGMENT OF ASSOCIATE JUDGE R M BELL

Reasons for Judgment were delivered by me on 3 August 2015 at 4:00pm

pursuant to Rule 11.5 of the High Court Rules

……………………………………………………

Registrar/Deputy Registrar

INTERNET TRADERS LIMITED v WILLIAMS [2015] NZHC 1809 [15 July 2015]

TABLE OF CONTENTS

Paragraph

Introduction  [1] Jurisdiction  [10] Parties

Trustees of the J R and L J Heale Family Trust  [18] Trustees of the Aesculapian Family Trust  [19] Deletion of defendants  [23]

Split trial directions  [24] Heale affidavit of 6 July 2015  [27] Pleadings      [29] Claims by more than one plaintiff  [31]

Prayers for injunctive relief  [34]

Shareholders of IT Pharmaceutical Supplies Ltd and

shareholders’ agreement  [35] Third party damage claim  [36] Misuse of confidential information  [37] Intellectual property  [38] Inducing breach of contract  [39] Companies Act 1993 section 174  [44] Unjust enrichment  [45] Overpleading  [46]

Application for particulars  [47] Application for stay  [49] Plaintiffs’ further discovery application  [52] Email addresses  [57] Vanuatu documents [63] Computer systems purchase  [66]

Trading documentation from 24 June 2014 to current date   [70] Lyon O’Neale Arnold files  [76] Defendants’ further discovery application  [86] Outcome       [89]

Introduction

[1]      On 8 and 9 July 2015 I heard the plaintiffs’ application for discovery and the defendants’ applications for strike-out, stay, further particulars and discovery.   On

15 July 2015 I issued a minute giving my decisions on those applications but without reasons.  I now give my reasons.

[2]      Heath J set out the background to this proceeding in his interim injunction decision of 23 December 2014.1   It is unnecessary for me to repeat that.

[3]      The most recent statement of claim has these causes of action:

(a)       A claim of breach of shareholders’ agreement by Internet Traders Ltd and IT Pharmaceutical Supplies Ltd against Ms Williams.

(b)      Breach    of    directors’    duties    by     Internet    Traders     Ltd    and

IT Pharmaceutical Supplies Ltd against Ms Williams.

(c)       Breach     of    fiduciary    duties    by    Internet    Traders     Ltd    and

IT Pharmaceutical Supplies Ltd against Ms Williams.

(d)      Breach of shareholders’ agreement by Mr Heale against Ms Williams.

(e)       Breach of fiduciary duties by Mr Heale against Ms Williams.

(f)       Prejudicial  conduct  under  s  174  of  the  Companies  Act  1993  by

Mr Heale against Ms Williams.

(g)Internet Traders Ltd and IT Pharmaceutical Supplies Ltd against all defendants for interference in contractual relationships.

(h)Internet Traders Ltd, IT Pharmaceutical Supplies Ltd and Mr Heale against all defendants for unjust enrichment.

1      Internet Traders Ltd v Williams [2014] NZHC 3407, [2015] NZCCLR 7, at [1]-[13].

[4]…