Lenark Pty Limited v TheChairmen1 Pty Limited & Ors (No 2) [2012] NSWSC 415

Lenark Pty Limited v TheChairmen1 Pty Limited & Ors (No 2) [2012] NSWSC 415

Although Lenark and Mr Chisholm were accepted as trade rivals at least in a general sense, the party seeking confidentiality protection beyond the implied undertaking had to justify restrictions document by document. The Court inspected the documents and balanced the confidentiality interests of The Chairmen1, Guildford Coal and Springsure against Lenark's need to conduct the proceedings and obtain instructions. Some documents were not sufficiently confidential because the information was old, general, public or unsupported by specific evidence; some investor, commitment and proposal information warranted initial restriction to named persons; and documents sufficiently relevant to...

Jurisdiction
Australia
Judgment Date
01 May 2012
Procedural Posture
Interlocutory Applications / Application by the Chairmen1 for Orders Restricting Access to Discovered Documents on Confidentiality Grounds
Outcome
Parties directed to bring in draft orders to give effect to the judgment.
Legal Topics
['discovery' 'confidentiality' 'inspection of Documents by Trade Rivals' 'restrictions on Access to Discovered Documents' 'oppression' "directors' Duties"]
['practice and Procedure' 'corporations'] ['discovery' 'confidentiality' 'inspection of Documents by Trade Rivals' 'restrictions on Access to Discovered Documents' 'oppression' "directors' Duties"]

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Procedural Posture

Interlocutory Applications / Application by the Chairmen1 for Orders Restricting Access to Discovered Documents on Confidentiality Grounds

Legal Issues

  1. 1 ['Whether Lenark and Mr Chisholm should be treated as trade rivals of The Chairmen1, Guildford Coal and Springsure for the purpose of restricting inspection of discovered documents.' 'Whether particular discovered documents warranted protection beyond the usual implied undertaking by limiting access to specified persons or excluding Mr Chisholm and Mr Forster.' 'Whether confidentiality undertakings should extend to interested third parties and expert witnesses.']

Ratio Decidendi

Although Lenark and Mr Chisholm were accepted as trade rivals at least in a general sense, the party seeking confidentiality protection beyond the implied undertaking had to justify restrictions document by document. The Court inspected the documents and balanced the confidentiality interests of The Chairmen1, Guildford Coal and Springsure against Lenark's need to conduct the proceedings and obtain instructions. Some documents were not sufficiently confidential because the information was old, general, public or unsupported by specific evidence; some investor, commitment and proposal information warranted initial restriction to named persons; and documents sufficiently relevant to...

Court Disposition

Parties directed to bring in draft orders to give effect to the judgment.

Orders

  • ['The parties are to send agreed draft orders to the Associate by 4pm on 8 May 2012 to give effect to the judgment.' 'If no agreement can be reached, the parties are to send their respective draft orders and short submissions as to the differences between them.' 'The parties should address the question of costs in...