HU YI GLOBAL INFORMATION RESOURCES (HOLDING) CO, HONG KONG LTD v. HAI WAI YING AND ANOTHER

HU YI GLOBAL INFORMATION RESOURCES (HOLDING) CO, HONG KONG LTD v. HAI WAI YING AND ANOTHER

Clause 6 (the restraint of trade) is unreasonable and unenforceable; however, there are serious questions to be tried that the 1st defendant misused the plaintiff's non-public client lists/trade secrets and that the 2nd defendant's staff misled customers; damages are inadequate and interlocutory injunctions...

Source-derived case information.

Citation
HU YI GLOBAL INFORMATION RESOURCES (HOLDING) CO, HONG KONG LTD v. HAI WAI YING AND ANOTHER
Parties
1st Defendant: 1st Defendant; 2nd Defendant: 2nd Defendant
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 November 2008
Case Number
HCA1429/2008
Procedural Posture
Application for Interlocutory Injunctions (commercial/employment Dispute) / Interlocutory Stage Hearing and Reserved Reasons for Injunction Application
Outcome
Interlocutory injunctions granted in part; restraint of trade clause declared unenforceable.
Legal Topics
Confidentiality Agreement, Non Compete Covenant, Misuse of Trade Secrets, Solicitation of Clients, Interim/interlocutory Injunction, Adequacy of Damages
Source Language
en
Contract Employment Law Trade Secrets Restraint of Trade Tort Unlawful Interference/misrepresentation Equitable Remedies Confidentiality Agreement Non Compete Covenant +4 more

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Parties

1st Defendant

1st Defendant

2nd Defendant

2nd Defendant

Procedural Posture

Application for Interlocutory Injunctions (commercial/employment Dispute) / Interlocutory Stage Hearing and Reserved Reasons for Injunction Application

Legal Issues

  1. 1 Whether the 1st defendant misused the plaintiff's confidential client lists or trade secrets to solicit clients
  2. 2 Whether the information complained of amounts to trade secrets
  3. 3 Whether clause 6 (restraint of trade) of the Confidentiality Agreement is enforceable

Ratio Decidendi

Clause 6 (the restraint of trade) is unreasonable and unenforceable; however, there are serious questions to be tried that the 1st defendant misused the plaintiff's non-public client lists/trade secrets and that the 2nd defendant's staff misled customers; damages are inadequate and interlocutory injunctions restraining misuse and misleading approaches are granted accordingly.

Court Disposition

Interlocutory injunctions granted in part; restraint of trade clause declared unenforceable.

Orders

  • Interlocutory injunction restraining the 1st defendant from making use of or disclosing or causing to be disclosed to the 2nd defendant or any third party the plaintiff's lists of clients, information for accessing the plaintiff's clients (which is not in the public domain), promotion plans, pricing strategies and...
  • Interlocutory injunction restraining the 1st and 2nd defendants or any of them, whether acting by themselves, their officers, servants, agents or otherwise howsoever, from effecting any unlawful interference on the plaintiff's business in their approach to and communication with their potential or prospective...