Seele Middle East FZE v Drake & Scull International SA Co [2014] EWHC 435 (TCC) (24 February 2014)

Seele Middle East FZE v Drake & Scull International SA Co [2014] EWHC 435 (TCC) (24 February 2014)

The court held that Seele had a strongly arguable case that the documents did not fall within the contractual provisions transferring ownership, that the documents were commercially sensitive, and that damages would not be an adequate remedy for Seele if the documents were used by competitors. The balance of convenience and preservation of the status quo favored granting the injunction. The court therefore continued the interim injunction restraining Drake & Scull from using, copying, removing, or disposing of the documents pending further order or arbitration.

Citation
[2014] EWHC 435 (TCC)
Parties
Claimant: Seele Middle East FZE; Defendant: Drake & Scull International SA CO
Jurisdiction
England and Wales
Judgment Date
24 February 2014
Procedural Posture
Arbitration Related Interim Injunction / Return Date Hearing on Continuation of Interim Injunction
Outcome
Interim injunction continued
Legal Topics
Interim Injunctions, Preservation of Evidence, Confidential Information, Arbitration Act 1996 S.44, Intellectual Property in Construction Contracts
Arbitration Commercial Law Intellectual Property Interim Injunctions Preservation of Evidence Confidential Information Arbitration Act 1996 S.44 Intellectual Property in Construction Contracts

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Parties

Seele Middle East FZE

Claimant

Drake & Scull International SA CO

Defendant

Procedural Posture

Arbitration Related Interim Injunction / Return Date Hearing on Continuation of Interim Injunction

Legal Issues

  1. 1 Whether an interim injunction should restrain the defendant from using, copying, removing, or disposing of certain proprietary documents pending arbitration
  2. 2 Whether the documents in question fall within contractual provisions regarding ownership and use
  3. 3 Adequacy of damages as a remedy for either party

Ratio Decidendi

The court held that Seele had a strongly arguable case that the documents did not fall within the contractual provisions transferring ownership, that the documents were commercially sensitive, and that damages would not be an adequate remedy for Seele if the documents were used by competitors. The balance of convenience and preservation of the status quo favored granting the injunction. The court therefore continued the interim injunction restraining Drake & Scull from using, copying, removing, or disposing of the documents pending further order or arbitration.

Court Disposition

Interim injunction continued

Orders

  • Drake & Scull restrained from making any use of, removing, disposing of, or parting with documents in Seele's site office, including proprietary installation plans, 3D models, and production drawings, pending further order or arbitration.
  • Seele to provide financial information regarding its ability to satisfy an undertaking in damages.