Ingersoll-Rand (Australia) Ltd v Industrial Rollformers P/L & Anor [2000] NSWSC 712

Ingersoll-Rand (Australia) Ltd v Industrial Rollformers P/L & Anor [2000] NSWSC 712

The plaintiff's specifications and tolerances as contained in its drawings (excluding steel grade/type), R&D information, and related materials are confidential, constitute trade secrets, and remained confidential. Defendants used plaintiff's confidential information in the creation and manufacture of the Strata Bolt and in their WMC tender, in breach of contract and equitable duty. The restraint of trade in the contract is enforceable to the extent that it relates to use of confidential information, but the duration and geographical scope were read down as excessive under s 4 of the Restraints of Trade Act. The cross-claim for price increases fails due to mutual agreement over price...

Jurisdiction
Australia
Judgment Date
25 July 2000
Procedural Posture
Equity Division Proceeding / Final Judgment After Trial
Outcome
Plaintiff successful in establishing confidentiality and breaches; injunctions and orders pending finalisation; cross-claim for damages dismissed; restraint clause read down.
Legal Topics
['confidential Information' 'breach of Contract' 'restraint of Trade' 'duty of Confidence' 'trade Secrets']
['equity' 'contract' 'trade Practices'] ['confidential Information' 'breach of Contract' 'restraint of Trade' 'duty of Confidence' 'trade Secrets']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Equity Division Proceeding / Final Judgment After Trial

Legal Issues

  1. 1 ["Whether the plaintiff's information provided to the defendants is confidential information" 'Whether the defendants misused such information in breach of contract and breach of equitable duty of confidence' 'Whether restraint clauses in the contract are void against public policy' 'Application of Restraints of Trade Act 1976 (NSW)']

Ratio Decidendi

The plaintiff's specifications and tolerances as contained in its drawings (excluding steel grade/type), R&D information, and related materials are confidential, constitute trade secrets, and remained confidential. Defendants used plaintiff's confidential information in the creation and manufacture of the Strata Bolt and in their WMC tender, in breach of contract and equitable duty. The restraint of trade in the contract is enforceable to the extent that it relates to use of confidential information, but the duration and geographical scope were read down as excessive under s 4 of the Restraints of Trade Act. The cross-claim for price increases fails due to mutual agreement over price...

Court Disposition

Plaintiff successful in establishing confidentiality and breaches; injunctions and orders pending finalisation; cross-claim for damages dismissed; restraint clause read down.

Orders

  • ['The restraint in clause 15 of the 1984 Agreement for the period after termination is invalid and unenforceable as originally drafted.' 'The restraint is read down to prohibit manufacturing a similar mining roof support within Australia for 9 months after termination.' "The specifications and tolerances (excluding...