Allfiled UK Ltd v Eltis & Ors

Allfiled UK Ltd v Eltis & Ors

The court found Allfiled UK had a good arguable case that its intellectual property and confidential information were misused by the Respondents, breaching fiduciary and contractual duties. The evidence disclosed a serious issue to be tried, and damages would not be an adequate remedy. Injunctive relief was appropriate, subject to provisos to allow Port Tech to fulfil its contract with Magpie using material developed after 19 January 2015 and not derived from Allfiled UK’s property. The balance of convenience favoured granting injunctions with conditions to protect both parties and third parties.

Parties
Applicant/claimant: Allfiled UK Limited; Respondent: Dan Eltis; Respondent: Julian Saunders; Respondent: Stephen Bennett; Respondent: Ben Barker; Respondent: Ben Pearson; Respondent: David Gibbs; Respondent: Edward Brindley; Respondent: William Pearson-Denial; Respondent: Michael Peachey; Respondent: Conor Restall; Respondent: Israr Hussain; Respondent: Matthew Sibson; Respondent: Daniel Womersley; Respondent: Matthew Hersee; Respondent: Port Technologies Limited; Respondent: Port Technology Holdings Limited; Respondent: Little Grey and Gray Limited; Intervener: Magpie Investment Holdings Limited
Jurisdiction
England and Wales
Judgment Date
19 May 2015
Procedural Posture
Civil / Interlocutory Application for Injunctive Relief Pending Trial
Outcome
Interlocutory injunctions granted pending trial, subject to provisos and directions for expedited trial.
Legal Topics
Fiduciary Duties, Breach of Confidence, Restrictive Covenants, Interlocutory Injunctions, Conspiracy, Interference With Contract
Company Law Employment Law Intellectual Property Law Fiduciary Duties Breach of Confidence Restrictive Covenants Interlocutory Injunctions Conspiracy +1 more

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Parties

Allfiled UK Limited

Applicant/claimant

Dan Eltis

Respondent

Julian Saunders

Respondent

Stephen Bennett

Respondent

Ben Barker

Respondent

Ben Pearson

Respondent

David Gibbs

Respondent

Edward Brindley

Respondent

William Pearson-Denial

Respondent

Michael Peachey

Respondent

Conor Restall

Respondent

Israr Hussain

Respondent

Matthew Sibson

Respondent

Daniel Womersley

Respondent

Matthew Hersee

Respondent

Port Technologies Limited

Respondent

Port Technology Holdings Limited

Respondent

Little Grey and Gray Limited

Respondent

Magpie Investment Holdings Limited

Intervener

Procedural Posture

Civil / Interlocutory Application for Injunctive Relief Pending Trial

Legal Issues

  1. 1 Whether the Respondents breached fiduciary duties owed to Allfiled UK as directors
  2. 2 Whether the Respondents breached contractual and implied duties of fidelity and confidence
  3. 3 Whether the Respondents unlawfully used or disclosed Allfiled UK’s intellectual property and confidential information

Ratio Decidendi

The court found Allfiled UK had a good arguable case that its intellectual property and confidential information were misused by the Respondents, breaching fiduciary and contractual duties. The evidence disclosed a serious issue to be tried, and damages would not be an adequate remedy. Injunctive relief was appropriate, subject to provisos to allow Port Tech to fulfil its contract with Magpie using material developed after 19 January 2015 and not derived from Allfiled UK’s property. The balance of convenience favoured granting injunctions with conditions to protect both parties and third parties.

Court Disposition

Interlocutory injunctions granted pending trial, subject to provisos and directions for expedited trial.

Orders

  • Respondents restrained from using, disclosing, or disseminating Allfiled UK’s intellectual property and confidential information developed before 19 January 2015.
  • Respondents required to deliver up Allfiled UK’s property and information.