Breach of Confidence by employees

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Case Study | Breach of Confidence by employees

Overview

GEA Refrigeration Inc. (“GEA”) is a leading manufacturer of industrial hygienic freezers. GEA’s success is based on the use of unique engineering features that distinguish its freezers from those of its competitors. The misappropriation of GEA’s confidential engineering drawings (the “GEA Drawings”) by former employees was the subject of this litigation.

The Issue

The central issues in this litigation were the application of the tort of breach of confidence and the springboard doctrine relating to the misappropriation of confidential engineering drawings by GEA’s former employees.

The Strategy

Singleton Reynolds represented GEA throughout the course of this litigation. GEA brought successful pre-trial applications to seal the British Columbia Supreme Court file in order to protect GEA’s confidential information from disclosure during the litigation. This action was litigated over 59 days of trial at the British Columbia Supreme Court and two days before the British Columbia Court of Appeal. GEA succeeded both at trial and on appeal, securing a judgment of more than $7.1 million dollars, plus special costs.

The British Columbia Court of Appeal affirms a significant award for breach of confidence in the high-tech industrial marketplace.

The Impact

The Court of Appeal’s reasons for judgment in this case provides interesting guidance on the application of the tort of breach of confidence and the damages remedies available to parties’ whose confidential information has been misappropriated. This case stands as a leading authority on these issues in BC. This is particularly important as the Vancouver area continues to grow as a hub for high-tech businesses whose success may be dependent upon the protection of confidential business information.

The Result

The British Columbia Supreme Court and the British Columbia Court of Appeal affirmed GEA’s right to protect and profit from its confidential business information in a competitive, technology driven, industrial market.

Learn More

More information about this case can be found in the following article GEA Refrigeration Inc. v Chang et al.

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