AIB PLC & Ors -v- Diamond & Ors [2011] IEHC 505 (14 October 2011)

AIB PLC & Ors -v- Diamond & Ors [2011] IEHC 505 (14 October 2011)

The court held that at the interlocutory stage, it is not required to definitively determine the applicable law but must be satisfied there is a strong arguable case that Irish law applies. The requirements for a springboard injunction are met if there is a strong arguable case of breach of contract or misuse of confidential information giving an unfair competitive advantage, damages are inadequate, and the balance of convenience favors relief. The court found AIB had established a strong arguable case on these points.

Citation
[2011] IEHC 505
Parties
Plaintiff: Allied Irish Bank PLC; Plaintiff: AIB Capital Markets PLC; Plaintiff: Allied Irish Banks International Financial Services Limited; Plaintiff: AIB Administrative Services Luxembourg S.A.R.L.; Plaintiff: AIB Hungary Administrative Services KFT; Plaintiff: AIB Administrative Services Schweiz GmbH; Plaintiff: AIB Administrative Services Nederland B.V.; Defendant: Pat Diamond; Defendant: Aidan Foley; Defendant: Gerry McEvoy; Defendant: Derek O’Reilly; Defendant: Andrew O’Shea; Defendant: Joe Walsh; Defendant: Centralis S.A.; Defendant: Centralis Switzerland GmbH; Defendant: Centralis Hungary KFT; Defendant: Nancyan S.A.
Jurisdiction
Ireland
Judgment Date
14 October 2011
Procedural Posture
Commercial / Interlocutory Application for Injunction
Outcome
Interlocutory injunction granted in part
Legal Topics
Springboard Injunctions, Breach of Contract, Confidential Information, Applicable Law, Interlocutory Relief
Employment Law Commercial Law Conflict of Laws Springboard Injunctions Breach of Contract Confidential Information Applicable Law Interlocutory Relief

Case Brief

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Parties

Allied Irish Bank PLC

Plaintiff

AIB Capital Markets PLC

Plaintiff

Allied Irish Banks International Financial Services Limited

Plaintiff

AIB Administrative Services Luxembourg S.A.R.L.

Plaintiff

AIB Hungary Administrative Services KFT

Plaintiff

AIB Administrative Services Schweiz GmbH

Plaintiff

AIB Administrative Services Nederland B.V.

Plaintiff

Pat Diamond

Defendant

Aidan Foley

Defendant

Gerry McEvoy

Defendant

Derek O’Reilly

Defendant

Andrew O’Shea

Defendant

Joe Walsh

Defendant

Centralis S.A.

Defendant

Centralis Switzerland GmbH

Defendant

Centralis Hungary KFT

Defendant

Nancyan S.A.

Defendant

Procedural Posture

Commercial / Interlocutory Application for Injunction

Legal Issues

  1. 1 Whether a springboard injunction should be granted against former employees and associated companies to prevent use of confidential information and solicitation of clients/employees
  2. 2 Whether Irish law or foreign law applies to the contractual and tortious claims
  3. 3 Whether the requirements for interlocutory relief are met, including fair issue to be tried, adequacy of damages, and balance of convenience

Ratio Decidendi

The court held that at the interlocutory stage, it is not required to definitively determine the applicable law but must be satisfied there is a strong arguable case that Irish law applies. The requirements for a springboard injunction are met if there is a strong arguable case of breach of contract or misuse of confidential information giving an unfair competitive advantage, damages are inadequate, and the balance of convenience favors relief. The court found AIB had established a strong arguable case on these points.

Court Disposition

Interlocutory injunction granted in part

Orders

  • Springboard injunctions restraining solicitation of AIB IFS customers and employees, and use of confidential information, granted against certain defendants pending trial.
  • Undertakings accepted from Mr. Diamond and Mr. O'Shea in lieu of injunctions; proceedings as against them not pursued further at this stage.