Labelmakers Group Pty Ltd v LL Force Pty Ltd (No 3) [2013] FCA 1059

Labelmakers Group Pty Ltd v LL Force Pty Ltd (No 3) [2013] FCA 1059

Respondents are jointly and severally liable (except Ms Leech) for losses and must compensate applicants either via equitable compensation for lost label sales (calculated at 30.5% profit margin and 30% discount rate over seven years) or account for profits made from solicited clients up to 31 May 2012. Permanent injunctions are to be granted restraining further misuse and requiring delivery up of confidential information. Ms Leech is liable in nominal damages of $1,000 due to limited involvement. Compensation for lost paper sales is refused as no fiduciary duty owed to Labelmakers Group WA.

Jurisdiction
Australia
Judgment Date
22 October 2013
Procedural Posture
Civil / Relief and Quantification Following Liability Judgment
Outcome
Liability for either equitable compensation or account of profits; permanent injunctions granted; quantum to be determined; parties to elect relief; respondent to make costs submissions; Ms Leech liable for nominal damages.
Legal Topics
['equitable Compensation' 'account of Profits' 'fiduciary Duties' 'breach of Contract' 'injunctive Relief' 'confidential Information' 'joint and Several Liability' 'costs']
['equity' 'employment Law' 'remedies'] ['equitable Compensation' 'account of Profits' 'fiduciary Duties' 'breach of Contract' 'injunctive Relief' 'confidential Information' 'joint and Several Liability' 'costs']

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Procedural Posture

Civil / Relief and Quantification Following Liability Judgment

Legal Issues

  1. 1 ['Calculation of equitable compensation or damages for breach of fiduciary and contractual duties' 'Whether an account of profits should be awarded' 'Assessment of joint and several liability of respondents' 'Entitlement to compensation for loss of paper sales' 'Permanent injunctions and delivery up of confidential information' 'Entitlement to costs on indemnity basis']

Ratio Decidendi

Respondents are jointly and severally liable (except Ms Leech) for losses and must compensate applicants either via equitable compensation for lost label sales (calculated at 30.5% profit margin and 30% discount rate over seven years) or account for profits made from solicited clients up to 31 May 2012. Permanent injunctions are to be granted restraining further misuse and requiring delivery up of confidential information. Ms Leech is liable in nominal damages of $1,000 due to limited involvement. Compensation for lost paper sales is refused as no fiduciary duty owed to Labelmakers Group WA.

Court Disposition

Liability for either equitable compensation or account of profits; permanent injunctions granted; quantum to be determined; parties to elect relief; respondent to make costs submissions; Ms Leech liable for nominal damages.

Orders

  • ['Applicants to elect between equitable compensation and account of profits after quantum calculation;' 'Permanent interlocutory injunctions requiring delivery up of confidential information to applicants;' 'Parties to file and serve minutes of orders and costs submissions by specified date;' 'Respondents jointly...