Sectorguard Plc v Dienne Plc [2009] EWHC 2693 (Ch) (03 November 2009)

Sectorguard Plc v Dienne Plc [2009] EWHC 2693 (Ch) (03 November 2009)

The committal application for breach of Undertaking 5 was struck out as an abuse of process because the evidence established impossibility of performance from the outset, rendering contempt impossible; the application had no real prospect of success and appeared motivated by improper purposes. Undertaking 5 was released due to impossibility of compliance.

Citation
[2009] EWHC 2693 (Ch)
Parties
Claimant: Sectorguard PLC; Defendant: Dienne PLC; Claimant (second Claim) / Defendant (first Claim): John Hare; Defendant (second Claim): Legion Group PLC (formerly Sectorguard PLC); Defendant (second Claim): Mark Higgins; Defendant (second Claim): Charles Cleverly
Jurisdiction
England and Wales
Judgment Date
03 November 2009
Procedural Posture
Interim Applications in Related Proceedings (first and Second Claims) / Interlocutory Hearing; Applications for Committal, Strike Out, Release of Undertaking, and Interim Injunction
Outcome
Committal application struck out as abuse of process; Undertaking 5 released; permission application adjourned; interim relief granted in Second Claim.
Legal Topics
Misuse of Confidential Information, Breach of Undertaking, Committal for Contempt, Strike Out Application, Release From Undertaking, Interim Injunction, Abuse of Process
Civil Procedure Equity Confidentiality Contempt of Court Misuse of Confidential Information Breach of Undertaking Committal for Contempt Strike Out Application +3 more

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Parties

Sectorguard PLC

Claimant

Dienne PLC

Defendant

John Hare

Claimant (second Claim) / Defendant (first Claim)

Legion Group PLC (formerly Sectorguard PLC)

Defendant (second Claim)

Mark Higgins

Defendant (second Claim)

Charles Cleverly

Defendant (second Claim)

Procedural Posture

Interim Applications in Related Proceedings (first and Second Claims) / Interlocutory Hearing; Applications for Committal, Strike Out, Release of Undertaking, and Interim Injunction

Legal Issues

  1. 1 Whether failure to comply with Undertaking 5 constitutes contempt
  2. 2 Whether committal application should be struck out for lack of reasonable grounds or abuse of process
  3. 3 Whether Undertaking 5 should be released due to impossibility of performance

Ratio Decidendi

The committal application for breach of Undertaking 5 was struck out as an abuse of process because the evidence established impossibility of performance from the outset, rendering contempt impossible; the application had no real prospect of success and appeared motivated by improper purposes. Undertaking 5 was released due to impossibility of compliance.

Court Disposition

Committal application struck out as abuse of process; Undertaking 5 released; permission application adjourned; interim relief granted in Second Claim.

Orders

  • Paragraph 1 of Sectorguard's committal application struck out.
  • Undertaking 5 released in relation to obligation to identify customers contacted.