White Winston Select Asset Funds LLC & Anor v Mahon & Anor

White Winston Select Asset Funds LLC & Anor v Mahon & Anor

The defendant misused confidential information by obtaining and using ECL’s customer lists for his own benefit while still a director and before ECL ceased trading, constituting a breach of confidence and breach of fiduciary and director’s duties under s.175 Companies Act 2006. The fact that many contacts originated from the defendant’s own efforts did not negate the confidential nature of the lists once provided to and used by ECL. The breach was time-limited and did not extend to conduct after ECL ceased trading and sold its business.

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 / Judgment on Liability
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, Director's Duties, Fiduciary Duty, Customer Lists, Confidential Information
Commercial Law Company Law Intellectual Property Breach of Confidence Director's Duties Fiduciary Duty Customer Lists 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 / Judgment on Liability

Legal Issues

  1. 1 Whether the defendant misused confidential information belonging to the company
  2. 2 Whether the defendant breached fiduciary and director's duties under the Companies Act 2006
  3. 3 Whether the defendant's use of customer lists constituted a breach of confidence

Ratio Decidendi

The defendant misused confidential information by obtaining and using ECL’s customer lists for his own benefit while still a director and before ECL ceased trading, constituting a breach of confidence and breach of fiduciary and director’s duties under s.175 Companies Act 2006. The fact that many contacts originated from the defendant’s own efforts did not negate the confidential nature of the lists once provided to and used by ECL. The breach was time-limited and did not extend to conduct after ECL ceased trading and sold its business.

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

  • Damages or account of profits to be determined; no permanent injunction granted; first defendant released from interim undertaking; second defendant awarded agreed costs of £6,000.