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In the recent decision Wilson Parking Australia 1992 Pty Ltd v Rush [2008] FCA 1601,
Wilson Parking Australia 1992 Pty Ltd (“Wilson”) was successful in obtaining interlocutory relief in the Federal Court of Australia against two former employees and their current employer.
In around June 2008, Mr Rush and Mr Sherriff left their employment with Wilson, and begun employment with S & K Car Park Management Pty Ltd (“S & K”), a competitor in the commercial car park operations industry. Wilson Parking, after becoming aware that its commercially sensitive information may have become available to their competitors, utilised Federal Court procedure to obtain searches of S & K’s computer systems.
Through those searches, Wilson discovered that S & K were in possession of Wilson documentation which was ‘highly confidential and sensitive sales documentation’. It was alleged that Mr Rush and Mr Sherriff had obtained that documentation, which included spreadsheets and other data, during their employment with Wilson. Wilson sought injunctions in the interlocutory proceedings.
The Court held that Wilson demonstrated a case ‘of quite obvious strength’ that the former employees of Wilson used confidential information obtained through their employment with Wilson, and ‘sought to use it for the benefit of S & K and to the detriment of Wilson’.
The Court, in addition to undertakings given by the former employees that they would not ‘use’ the confidential information, imposed interlocutory injunctions against the former employees preventing the future use of the confidential information.
HR tip for Employers:
Whilst it is important that employers fully utilise the skills and knowledge of new employees, prospective employers should be cautious with the information that new employees have retained from their previous employment. This includes taking proactive steps to ensure that any information that may seem to be confidential to another enterprise is carefully assessed. Failure to do so can result in costly legal proceedings. It may also result in newly employed workers being restricted from doing the job they were employed to do.
Ben Motro , Lawyer
