CTRISKS RATING LTD v. DELHAISE PHILIPPE FREDERIC AND OTHERS

CTRISKS RATING LTD v. DELHAISE PHILIPPE FREDERIC AND OTHERS

On the documentary record and oral evidence the court found no misappropriation: the alleged HYBFRM reports did not exist and invoices/emails reflected internal transfer pricing and documentation for related companies rather than transmission of confidential methodology; outside work by Sonia and Philippe was de minimis, caused no loss and did not engage fiduciary duties; claims dismissed and costs ordered accordingly.

Citation
[2022] HKCFI 1100
Parties
Plaintiff: CTRR; Related Company: CTRS; Founder and Co Owner of CTRR: Michael; Co Founder/employee: Neville; Employee: Anita; Employee/advisor: Fai; Related Company (philippe's Company): CIS; Related Company (philippe's Company): CMC / CMCC; Defendant; Co Owner of CTRR and Owner of Cis/cmc: Philippe; Defendant; Employee of CIS: Sonia
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 September 2021
Case Number
HCA3108/2016
Procedural Posture
Civil Litigation Misappropriation and Breach of Fiduciary Duty / Judgment at Trial
Outcome
Misappropriation claim dismissed; outside work claims dismissed against Sonia and Philippe; costs awarded to defendants in specified proportions.
Legal Topics
Misappropriation of Trade Secrets/methodology, Outside Work/conflict of Interest, Discovery, Transfer Pricing/internal Invoicing, Pleading and Evidence, Costs and Indemnity
Source Language
EN
Company Law Fiduciary Duties Intellectual Property Contract Law Corporate Governance Civil Procedure Costs Misappropriation of Trade Secrets/methodology Outside Work/conflict of Interest +4 more

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Parties

CTRR

Plaintiff

CTRS

Related Company

Michael

Founder and Co Owner of CTRR

Neville

Co Founder/employee

Anita

Employee

Fai

Employee/advisor

CIS

Related Company (philippe's Company)

CMC / CMCC

Related Company (philippe's Company)

Philippe

Defendant; Co Owner of CTRR and Owner of Cis/cmc

Sonia

Defendant; Employee of CIS

Procedural Posture

Civil Litigation Misappropriation and Breach of Fiduciary Duty / Judgment at Trial

Legal Issues

  1. 1 Whether the defendants misappropriated the HYBFRM rating methodology
  2. 2 Whether defendants breached fiduciary duties by performing outside work for related companies
  3. 3 Whether the emails and invoices evidence transmission of confidential methodology

Ratio Decidendi

On the documentary record and oral evidence the court found no misappropriation: the alleged HYBFRM reports did not exist and invoices/emails reflected internal transfer pricing and documentation for related companies rather than transmission of confidential methodology; outside work by Sonia and Philippe was de minimis, caused no loss and did not engage fiduciary duties; claims dismissed and costs ordered accordingly.

Court Disposition

Misappropriation claim dismissed; outside work claims dismissed against Sonia and Philippe; costs awarded to defendants in specified proportions.

Orders

  • Misappropriation claim dismissed.
  • Outside work claims dismissed.