ESL Fuels Ltd v Fletcher & Anor

ESL Fuels Ltd v Fletcher & Anor

There is a serious issue to be tried as to whether the information relating to Ultra 35 constitutes a trade secret or confidential information. However, the balance of convenience favours the defendants continuing to trade in Prema 35, subject to an undertaking to preserve net profits, as damages would be an adequate remedy for ESL and an injunction would risk strangling Prema's business at birth. An interim injunction will issue only to protect the confidentiality of the alleged trade secret, not to restrain sales of Prema 35.

Parties
Claimant: ESL Fuels Ltd; Defendant: Stephen Fletcher; Defendant: Prema Energy Ltd
Jurisdiction
England and Wales
Judgment Date
27 November 2013
Procedural Posture
Civil Chancery (interim Injunction) / Interim Application for Injunctive Relief Pending Trial
Outcome
Interim injunction granted in part; defendants permitted to continue trading Prema 35 subject to undertaking to preserve net profits; confidentiality of alleged trade secret protected pending trial.
Legal Topics
Confidential Information, Trade Secrets, Interim Injunctions, Employee Competition, Breach of Confidence
Employment Law Intellectual Property Commercial Law Confidential Information Trade Secrets Interim Injunctions Employee Competition Breach of Confidence

Case Brief

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Parties

ESL Fuels Ltd

Claimant

Stephen Fletcher

Defendant

Prema Energy Ltd

Defendant

Procedural Posture

Civil Chancery (interim Injunction) / Interim Application for Injunctive Relief Pending Trial

Legal Issues

  1. 1 Whether the information relating to Ultra 35 constitutes a trade secret or confidential information protectable by injunction
  2. 2 Whether the claimant is entitled to interim injunctive relief restraining the defendants from using or disclosing the alleged confidential information
  3. 3 Whether the balance of convenience favours granting or refusing the interim injunction

Ratio Decidendi

There is a serious issue to be tried as to whether the information relating to Ultra 35 constitutes a trade secret or confidential information. However, the balance of convenience favours the defendants continuing to trade in Prema 35, subject to an undertaking to preserve net profits, as damages would be an adequate remedy for ESL and an injunction would risk strangling Prema's business at birth. An interim injunction will issue only to protect the confidentiality of the alleged trade secret, not to restrain sales of Prema 35.

Court Disposition

Interim injunction granted in part; defendants permitted to continue trading Prema 35 subject to undertaking to preserve net profits; confidentiality of alleged trade secret protected pending trial.

Orders

  • Defendants to undertake to preserve net profits realised on the sale of Prema 35 pending trial.
  • Interim injunction issued to protect the confidentiality of the alleged trade secret as defined in the schedule.