White Winston Select Asset Funds LLC & Anor v Mahon & Anor [2019] EWHC 1381 (Ch) (04 June 2019)

White Winston Select Asset Funds LLC & Anor v Mahon & Anor [2019] EWHC 1381 (Ch) (04 June 2019)

The defendant's obtaining, copying, and use of ECL's customer lists constituted a breach of confidence and a breach of fiduciary and director's duties under s.175 CA2006, as the lists were confidential information belonging to ECL and the defendant's actions were unauthorized and for personal benefit. The fact that the defendant had contributed to the creation of the lists or that customers were personally loyal to him did not negate the breach. The breach of director's duty was time-limited to the period when ECL still had business interests.

Citation
[2019] EWHC 1381 (Ch)
Parties
Claimant: White Winston Select Asset Funds LLC; Claimant: English Cut London Limited; Defendant: Thomas Michael Mahon; Defendant: S. Redmayne Limited
Jurisdiction
England and Wales
Judgment Date
04 June 2019
Procedural Posture
Civil / Liability Trial
Outcome
Liability established for breach of confidence and limited breach of fiduciary/director's duty against the first defendant. Claim against the second defendant discontinued.
Legal Topics
Breach of Confidence, Fiduciary Duty, Director's Duties, Misuse of Confidential Information
Commercial Law Company Law Equity Breach of Confidence Fiduciary Duty Director's Duties Misuse of Confidential Information

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Parties

White Winston Select Asset Funds LLC

Claimant

English Cut London Limited

Claimant

Thomas Michael Mahon

Defendant

S. Redmayne Limited

Defendant

Procedural Posture

Civil / Liability Trial

Legal Issues

  1. 1 Whether the defendant breached confidence by misusing customer lists
  2. 2 Whether the defendant breached fiduciary and director's duties under Companies Act 2006

Ratio Decidendi

The defendant's obtaining, copying, and use of ECL's customer lists constituted a breach of confidence and a breach of fiduciary and director's duties under s.175 CA2006, as the lists were confidential information belonging to ECL and the defendant's actions were unauthorized and for personal benefit. The fact that the defendant had contributed to the creation of the lists or that customers were personally loyal to him did not negate the breach. The breach of director's duty was time-limited to the period when ECL still had business interests.

Court Disposition

Liability established for breach of confidence and limited breach of fiduciary/director's duty against the first defendant. Claim against the second defendant discontinued.

Orders

  • Claim against S. Redmayne Limited discontinued with costs of £6,000 to be paid to D2.
  • No permanent injunction or undertaking required against D1; remedy limited to damages or account of profits, to be determined separately.