Fortrend Securities Pty Ltd v Wollermann [2023] FCA 70

Fortrend Securities Pty Ltd v Wollermann [2023] FCA 70

Fortrend established a strong prima facie case that Wollermann and Lyle breached confidentiality obligations in clauses 10.2 and 10.3 by accessing, downloading and using Fortrend Confidential Information, including client information and StoneX ranking information, for the benefit of Shaw and LWAM. It also established a prima facie case that Shaw knew or ought to have known of those obligations and was involved in facilitating transfers of Fortrend clients, and that the six-month non-solicitation and non-compete restraints were reasonable and enforceable to protect Fortrend's customer relationships, goodwill, commercial know-how and Confidential Information. Because Fortrend faced a...

Jurisdiction
Australia
Judgment Date
09 February 2023
Procedural Posture
Contracts; Interlocutory Application for Injunctive Relief Concerning Confidentiality, Non Solicitation and Non Compete Obligations / Interlocutory Application Heard on 1 February 2023; Orders and Reasons Delivered on 9 February 2023
Outcome
Interlocutory injunctive relief granted substantially in the form sought by Fortrend, with joinder, delivery up, discovery, mediation and further conduct orders made.
Legal Topics
['interlocutory Injunctions' 'confidential Information' 'restraint of Trade' 'non Solicitation Obligations' 'non Compete Obligations' 'delivery Up of Property' 'discovery']
['contracts' 'employment Law' 'equity' 'civil Procedure'] ['interlocutory Injunctions' 'confidential Information' 'restraint of Trade' 'non Solicitation Obligations' 'non Compete Obligations' 'delivery Up of Property' 'discovery']

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Procedural Posture

Contracts; Interlocutory Application for Injunctive Relief Concerning Confidentiality, Non Solicitation and Non Compete Obligations / Interlocutory Application Heard on 1 February 2023; Orders and Reasons Delivered on 9 February 2023

Legal Issues

  1. 1 ['Whether Fortrend established a prima facie case that Wollermann and Lyle breached confidentiality obligations in their letters of employment by accessing, downloading, retaining or using Confidential Information.' 'Whether Fortrend established a prima facie case that Shaw was knowingly concerned in, or aided and abetted, counselled or procured breaches by Wollermann and Lyle.' 'Whether Fortrend established a prima facie case that the non-solicitation and non-compete restraints in clauses 11.2 and 11.3 were valid, reasonable and enforceable restraints of trade.' 'Whether the balance of convenience favoured granting interlocutory injunctions preserving the status quo pending trial.']

Ratio Decidendi

Fortrend established a strong prima facie case that Wollermann and Lyle breached confidentiality obligations in clauses 10.2 and 10.3 by accessing, downloading and using Fortrend Confidential Information, including client information and StoneX ranking information, for the benefit of Shaw and LWAM. It also established a prima facie case that Shaw knew or ought to have known of those obligations and was involved in facilitating transfers of Fortrend clients, and that the six-month non-solicitation and non-compete restraints were reasonable and enforceable to protect Fortrend's customer relationships, goodwill, commercial know-how and Confidential Information. Because Fortrend faced a...

Court Disposition

Interlocutory injunctive relief granted substantially in the form sought by Fortrend, with joinder, delivery up, discovery, mediation and further conduct orders made.

Orders

  • ['LWAM Pty Ltd be joined as the Fourth Respondent and the title of the proceeding be amended accordingly.' 'By 4pm on 13 February 2023, pursuant to Rule 14.01 of the Federal Court Rules 2011 (Cth), Shaw and LWAM are to deliver up any FSA Property by making it available for Fortrend to inspect and take copies...