LAM WING KIT v. DEXTRA CHINA LTD

LAM WING KIT v. DEXTRA CHINA LTD

On the totality of contemporaneous documentary and forensic evidence the judge found that Lam was instrumental in planning, setting up and operating a competing business (Agility), he misused and disseminated Dextra/DBPG confidential information and induced or encouraged staff departures; those breaches justified summary dismissal; Dextra/DBPG proved loss of profits for the defined period and was awarded damages, interest, delivery up, injunctions and costs.

Citation
LAM WING KIT v. DEXTRA CHINA LTD
Parties
1st Plaintiff (hca 38/2010) / Defendant (hca 967/2010): Dextra China Limited; 2nd Plaintiff (hca 38/2010): Dextra Building Products (Guangdong) Limited; Defendant (hca 38/2010) / Plaintiff (hca 967/2010): Lam Wing Kit
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 April 2014
Case Number
HCA967/2010
Procedural Posture
Employment and Commercial Litigation (wrongful Dismissal; Breach of Fiduciary Duty; Misuse of Confidential Information) / Judgment at Trial (court of First Instance)
Outcome
Dextra/DBPG claims upheld; Lam found to have breached duties and misused confidential information; Lam's wrongful dismissal claim dismissed.
Legal Topics
Wrongful Dismissal, Breach of Fiduciary Duty, Misuse of Confidential Information, Misappropriation of Trade Secrets, Injunctions, Damages for Loss of Profits, Mareva Injunction
Source Language
EN
Employment Law Contract Law Equity (fiduciary Duties and Confidence) Commercial Litigation Wrongful Dismissal Breach of Fiduciary Duty Misuse of Confidential Information Misappropriation of Trade Secrets +3 more

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Parties

Dextra China Limited

1st Plaintiff (hca 38/2010) / Defendant (hca 967/2010)

Dextra Building Products (Guangdong) Limited

2nd Plaintiff (hca 38/2010)

Lam Wing Kit

Defendant (hca 38/2010) / Plaintiff (hca 967/2010)

Procedural Posture

Employment and Commercial Litigation (wrongful Dismissal; Breach of Fiduciary Duty; Misuse of Confidential Information) / Judgment at Trial (court of First Instance)

Legal Issues

  1. 1 Whether defendant set up and operated a rival business in breach of duties owed as an employee and director
  2. 2 Whether defendant used or disseminated employer confidential information and trade secrets
  3. 3 Whether summary dismissal for misconduct was justified

Ratio Decidendi

On the totality of contemporaneous documentary and forensic evidence the judge found that Lam was instrumental in planning, setting up and operating a competing business (Agility), he misused and disseminated Dextra/DBPG confidential information and induced or encouraged staff departures; those breaches justified summary dismissal; Dextra/DBPG proved loss of profits for the defined period and was awarded damages, interest, delivery up, injunctions and costs.

Court Disposition

Dextra/DBPG claims upheld; Lam found to have breached duties and misused confidential information; Lam's wrongful dismissal claim dismissed.

Orders

  • Damages awarded to Dextra/DBPG in the sum of RMB 4135569
  • Pre-judgment interest awarded of RMB 1323382 at judgment rate of 8% from 28 April 2010