Elcock Optometrists Pty Ltd & Opalray Pty Ltd v Wallis & Ors [1993] QSC 151
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sI
State Reporting Buteau
· TRANSCRIPT
OF
PROCEEDINGS
(Copyright
in
this transcript is vested in the Crown. Copies thereof must not be made or sold
.without the written authority of the Director, State Reporting Bureau.)
SUPREME COURT OF
QUEE~SLAND
CIVIL
JURISDICTION
No
689
of
1992
ELCOCK
bPTOMETRISTS.~TY
LTD
First Plaintiff
and
OPALRAY
PTY LTD
Second
Plaintiff
( \
and
TREVOR
WALLIS
and
ZAMB
GLASS PTY LTD
and
MACSHELF (NO
47)
PTY LIMITED
.
trading
as
EYEWEAR
NOW
THE ONE
HOUR
OPTICAL SPECIALISTS
BRISBANE
..
DATE
04/06/93
JUDGMENT
First
Defendant
Second
Defendant
Third Defendant
1
4th Floor, The Law Courts, George Street, Brisbane, Q. 4000 Telephone: (07) 227 4360. Facsimile: (07) 227 5532
-- 1 of 22 --
040693
evs (Williams
J)
HIS
HONOUR:
I
have
prepared reasons
for
judgment,
which
I
publish.
My
orders
will
be
as follows:
on
the
summons
of the
first
and
third
defendants
filed
7 May
1993
I
ordei ttiat
the
first
plaintiff file
and
serve
a
supplementary
affidavit
of
documents
within
14
days
of the
making
of
this
order,
no
order
10
as
to
costs.
On
the
summons
of the
first
plaintiff
of
11 May
1993
I
order
that,
(1)j
the
first
defendant provide
within
14
days
of the
making
of
this
order
further
and
better particulars
of
(',
20 \ )
paragraph
six
of the
defence
delivered
19
August
1992
as
sought
in
paragraphs
1 '
2,
3
and
4
of
the
request of 13.April
1993
and
paragraph
2
of the
letter
of
11 May
1993;
(2),
the
('l
'J.·-
--
first
and
third
defendants
file
and
serve
a
supplementary
affidavit
of
documents
within
14
days
of the
making
of
this
order;
(3)
,
the
first
and
third
defendants
pay
the
first
plaintiff's
costs of
and
incidental
to
the
summons
to
be
taxed.
.
...,.
•
2 JUDGMENT
30
(
......
40
(
50
60
-- 2 of 22 --
()
(j
IN
THE
SUPREME
COURT
OF QUEENSLAND
No.
689
of
1992
Before
the
Hon.
Mr
Justice
Williams
BETWEEN:
ELCOCK
OPTOMETRISTS
PTY LTD
First Plaintiff
AND: OPALRAY
PTY LTD
Second
Plaintiff
TREVOR
WALLIS
First
Defendant
AND:
ZAMB
GLASS PTY LTD
Second
Defendant
AND:
MACSHELF
(NO.
47)
PTY LIMITED
trading
as
EYEWEAR
NOW
THE
ONE HOUR
OPTICAL SPECIALISTS
Third
Defendant
JUDGMENT
- WILLIAMS
J.
Delivered the 4th
day
of
June,
1993
CATCHWORDS:
Practice
-
further
and
better particulars of pleadings
-
further
and
better
discovery.
Counsel: Varley for 1st
and
3rd Defendants
Doyle
for 1st Plaintiff
Solicitors:
Clarke and
Kann
for 1st
and 3rd Defendants
Clayton Utz
for 1st Plaintiff
Hearing date: 13th
May 1993
-- 3 of 22 --
IN
THE SUPREME
COURT
OF QUEENSLAND
No.
689
of
1992
BETWEEN:
ELCOCK
OPTOMETRISTS
PTY
LTD
First Plaintiff
AND: OPALRAY
PTY LTD
Second
Plaintiff
(l
AND:
()
AND:
TREVOR
WALLIS
First
Defendant
ZAMB
GLASS PTY LTD
Second
Defendant
MACSHELF
(NO.
47)
PTY LIMITED
trading
as
EYEWEAR
NOW
THE
ONE HOUR
OPTICAL SPECIALISTS
Third
Defendant
JUDGMENT
- WILLIAMS
J.
Delivered the 4th
day
of
June,
1993
By summons
filed
7th
May
1993
the
first
and
third
defendants ("the defendants")
have
applied for orders
that
the
first plaintiff
("the
plaintiff")
provide
further
and
better
particulars of paras.
8
and
11
of
its
statement of claim
delivered
22nd
July
1992, and
also that the
plaintiff
make,
file
and serve
a
further
and
better affidavit of
documents.
By a summons
filed
11th
May 1993
the
plaintiff
has sought
orders that the
first
defendant provide further
and
better
-- 4 of 22 --
2
particulars
of
the
defence
delivered
19th
August
1992,
and
also
that
the
first-and third
defendants
make,
file
and
serve
a
further
and
better affidavit
of
documents.
It
will
be .·necessary
to
refer to
each
of
those four
applications separately,
but before
doing so
it
is
convenient
to
set
out the
broad
detail
of the action.
Over
the relevant
period the
plaintiff
has
carried
on
the
practice of
optometry
at
28
locations
throughout
Queensland;
the
administrative
headquarters
were
in
central
Brisbane.
From
1st
August
1988
to
18th
November
1991
the
first
defendant
was
employed
full
time
by
the
plaintiff
as
its
general
manager.
After
._leaving
employment
with
the
plaintiff,
the
first
defendant
has
been
employed by
the
third
defendant
which
carries
on
business as
optometrists
in
competition with
the
plaintiff.
Broadly
the
allegation
of the
plaintiff is
that
during
the
course
of the
first
defendant's
employment
with
it,
he
wrongfully copied
and
took
away
confidential
information
which has·
been used
to
solicit
business
from
clients
of the
plaintiff,
and has thereby caused
the
plaintiff
to suffer loss
and damage. The
relief
claimed
by
the
plaintiff
includes
damages
for
breach of contract of
employment, damages
for
breach
of
a
duty
of
good
faith,
an account
of
profits,
and
damages
for
conversion and/or detinue.
The
defendants
do
not admit
critical
allegations
made
in
the statement of claim, but they
do
admit
that the
first
defendant
in the course of
employment
with the
plaintiff, at
various .times,. copied the
plaintiff's
information and took
it
0
0
0
G
-- 5 of 22 --
( )
( )
__
/
(
3
away.
Specifically
the
defence
alleges
that
conduct
was
not
"without
the
first
plaintiff's
authority or
consent".
In the
course
of
dealing
with
the
specific
applications
it
will
be
necessary
to
go
to
the pleadings
in
some
more
detail,
but
the
foregoing
presents
a
broad overview
of
what
is
involved
in
the
litigation.
Defendants'
claim
for further
and
better particulars
Further
and
better
particulars
are
sought
of
paras.
8
and
11
of the statement of
claim; they
are
in
the
following terms:
"8.
In the
course of the
employment
(at
times
and
in
ways
not
known
in
detail
to
the
First
Plaintiff)
the
First
Defendant
copied
the
First
Plaintiff's
information and/or
removed from
the
First Plaintiff's
premises
at
Level
24,
Lennons
Plaza,
66 Queen
Street,
Brisbane
documents
containing the
First Plaintiff's
information.
11 .
In
consequence
of the matters
referred to inparas.
8-10
the
First Plaintiff
has
suffered
loss
and
damage
in
the
way
of loss of
clients."
The
initial
request for further
and
better particulars
of
the statement
of
claim
was made
on
25th
August 1992;
so
far
as
is
relevant
it
was
in these
terms:
"3.
As
to para.
8
of the
Statement
of
Claim:
(a)
Identify the information allegedly
copied
by
the
First
Defendant; and
(b)
Identify the information allegedly
removed
by
the
First
Defendant.
5.
As
to
para~
11
of the Statement of
Claim,
provide full· particulars of the loss
and damage
allegedly suffered
by
the
First Plaintiff,including identification of those clients
which
it is alleged the First Plaintiff
has
lost."
-- 6 of 22 --
4
Further
and
better
par~iculars
were
•upplied in
response
thereto
on
l7th
November
1992.
The
relevant
part~culars
were
stated
as follows:
. '
"4.
(a)
The
.
First Plaintiff
is
unable
to
provide
full
particulars
of the information
copied
by
the
First
·
Defendant
until after
interlocutory steps
have been
completed,
but
it
includes the
names
and
addresses
of
customers
of the
First Plaintiff.
Further
details will
be
provided
prior to
trial.
(b)
The
First.
Plaintiff
is
unable
to
provide
full
particulars
of the information
removed by
the-
First
Defendant
but
it
includes the
names
and
addresses ofcustomers-of the
First Plaintiff.
Further
particulars will
be
provided
prior
to
trial.
6.
The
First Plaintiff is
unable
to
provide
fullparticulars
of
its
loss
and
damage
at this
stage. Full
particulars will
be
provided
priorto
trial."
Thereafter
some
discovery
was
had,
but, as
will
appear
later,
there are deficiencies in
the discovery
made
by
each
0
0
side.
On
the
basis that
the
plaintiff
had
inspected
documents
0
disco~ered
by
the defendants the
solicitors
for the
latter
in
a
letter
dated 26th
March 1993
asserted
that
the
"First
Plaintiff
should provide these
particulars
now
that
it
has
had
an
opportunity
to inspect the
documents
discovered
by
our
clients"; that assertion
was made
specifically in relation to
para.
4
(a)
of ·the further
and
better particulars originally
supplied. That
letter
also
sought
further
and
better
particulars of the matters referred to in paras.
4(b) and
6
of
the original further
and
better particulars
-"within fourteen
days". 'The
letter asserted that the defendants were
"entitled
to proper particulars of the allegations in the Statement of
c
-- 7 of 22 --
5
Claim
and
is
not required
to
wait
for
those
to
be
delivered
some
time
prior
to
trial
when
convenient
to
the First
Plaintiff."
The
solicitors
for
the
plaintiff
responded
in
a
letter
dated
8th April
1993,
by
asserting that
the
plaintiff
would
"not
be
in
a
position to
provide
them
until
having
received
Answers
to Interrogatories
which
our
client·
proposes
to
deliver for
the
examination
of
your
client."
The
defendants'
()
reply
was
set
out
in
a
letter
of
15th
April
1993
from
its
()
(_)
solicitors.
The
relevant
part·
of the
letter is
in
the
following terms:
"We
do
not accept
that
the
particulars
which
our
clients
have
sought
are
particulars,
the provision
of
which
should
be
delayed
until
the
completion
of
interlocutory steps.
How
is
it
that
your
client
is
unable
to
provide
particulars
of
its
loss
and
damage
until
it
has
had an
opportunity
to interrogate
our
clients?
Unless
the
further
and
better particulars
are
provided
by
April
23, 1993,
our
instructions
are
to
make
an
appropriate application.
Again,
we
shall
be
seeking
the costs of
such
an
application."
As
noted
above
the defendants
filed
the
summons
on
7th
May. By
letter
dated 11th
·May
1993
the
first
plaintiff
said
this:
"As
to
your
client's
request for further
and
better
discovery
(sic)
of the Statement
of
Claim
we
advise
as follows:-
(a) Paragraph
8
of the Statement
of
Claim
The
information copied
and removed from
the
First Plaintiff's
premises included:
(
i) Extracts of the
First Plaintiff's client
list
forwarded by
the Defendants' former·
solicitors,
Messrs Michael Quinn andCompany
to the
Plaintiff's solicitors
under cover of
a
letter
dated
21 May,
1992.
-- 8 of 22 --
(b)
6
(
ii)
Extracts of
the
.
First
Plaintiff's
client
list
referred to in
Schedule
2
of the
First
..
Defendant's
Supplementary Af.fidavi
t
of
Documents
dated
21
April,
1993.
Further
and
better
particulars will
be
provided
after
interlocutor~
steps
have
been completed.
Paragraph
11
of
the
Statement
of
Claim
The
loss suffered
by
our
client
is
the
loss of
custom which
the
First Plaintiff
would
otherwise
have had
but
for the
conduct
of the
Defendants
referred to in
para.
10
of the
Statement
of
Claim.
Further
and
better
particulars will
be
provided
after
interlocutory steps
have been
completed."
0
On
the
hearing
of
the application
counsel
for the
defendants
conceded
that
the
particulars of
para.
8
provided
Q
in
the
letter
of
11th
May
were
"acceptable
at
this
stage".
But he
did
submit
that further
and
better particulars
of para.
--
11
should
still
be
provided.
Counsel
for the
plaintiff
made
it
clear in
the course
of his
submissions
(if
it
were
not
already
so)
that
the
plaintiff's
loss
and
damage was
their
"loss of
custom"
following
from
the defendants'
conduct.
As
the
first
defendant
had
not yet
particularised
what
precise
..
-
information
he had
taken,
and
as the defendants
have
not
revealed
what
use they
had
made
of that
information,
it
was
not possible for the
plaintiff
to give
further particulars.
Given
the nature of the defendants' conduct
constituting
the cause
of action,
and
the relationship
between
the precise
conduct
of the
first
defendant
and
the loss
occasioned by
the
plaintiff,
I am
of the opinion
that
the.
piaintiff'
s
initial
response to the request for further
and
better particulars
was
- -
the appropriate one. The
defendants have only
made
incomplete
discovery (for reasons which I
will state later)
and
0
-- 9 of 22 --
7
interrogatories
have
not
yet
been
delivered.
In those
circumstances
it
was
premature
in
my
view
for
the
defendants
to
bring
an
application for further
and
better
particulars.
The
particulars
provided
in
the
letter
of
11th
May
did not
in
any
way
advance
the
position,
and·
I
reject
the
submission
made
on
behalf of
the
defendants
that
by
providing
that
information
the
plaintiff
conceded
that
at
all
material
times
it
was
in
a
position to
provide
more
particularity.
()
I
would
therefore refuse to
make
the order
sought
by
the
defendants
that
the
plaintiff
provide
further
and
better
particulars
of paras.
8
and
11
of the
Statement
of
Claim.
Application
bv
Defendants
for further
and
better
discovery
by
Plaintiff
The
plaintiff
filed
and
served
an
affidavit
of
documents
on
22nd
February
1993.
On
24th
March 1993
the
solicitors
for
the defendants inspected those
documents and
thereafter
( )
letters
were exchanged between
the
solicitors
for
the
parties
'-.___./
regarding the
adequacy
of the discovery
made
by
the
plaint~ff.
The
solicitors
for the
defendants pointed
to
a
number
of
specific areas
where
it
was
contended
that
there
were
deficiencies in the
affidavit.
That culminated
in the
solicitors
for the
plaintiff
stating in
a
letter
of
6th
May 1993
(sent
by
facsimile
transmission):
"As
to
your
request for further
and
better
discovery
by
our
client,
our
client
has provided
to
us
further
documents which
it
is
prepared to discover.
We
are currently
preparing
a
supplementary
affidavit of
documents but in the
meantime, should you wish to inspect those documents please
-- 10 of 22 --
8
contact
Mr
Powell
of
our
office to
·
arrange
a
mutually
con:venient
time."
Notwithstanding
that,
application in
question
was
on
the
following
day
the
filed
by
the
solicitors
for the
defendants.
.
The
question
of
.
further
and
better
discovery
by
th~
plaintiff
was·
taken
up
further
by
its
solicitor
in
the
letter
of
12th
May
1993
to
the
solicitors
for
the defendants.
It
pointed
out,. correctly, that prior to
receiving the
application
they
were
"arranging
for
our
client
to
file
a 0 /
Supplementary
Affidavit of
Documents".
.The
letter
went on
to
state that
they
had
requested the
plaintiff
"to
make
further
searches
to
attempt
to locate
any
further
discoverable
documents".
A
question
was
then
raised
as
to
the
possibility
of relevant
documents
having
been
taken
by
the
first
defendant
from
the
plaintiff's
custody
when
he
left
his
employment.
The
letter
then
stated that
once
"those searches
have been
completed
we
shall
arrange
for
our
client
to
file
its
Supplementary
Affidavit of
Documents".
In order to
assist
the
defendants the
solicitors
for the
plaintiff
then
detailed in
that
letter
some
nineteen
documents
or categories of
.documents
which would be
referred to in the
Supplementary
Affidavit.
Counsel
.
for the defendants sought an
order for further
and
better
discovery within fourteen
days and an
order for
costs.
In
my
opinion the application for, further
and
better
discovery
was
strictly
premature
because_.~he
solicitors
had on
the
day
before the application
was .
filed
conceded
that
a
supplementary
affidavit
was
necessary. In
my
view, given the
0
0
G
-- 11 of 22 --
9
whole
history of
the
litigation,
it
was
unreasonable
for
the
solicitors
for
the
defendants not
to
give
the
solicitors
fo~
the
plaintiff
a
reasonable
time
to
comply
·
with
that
concession.
However,
because
of the
feuding
ori
interlocuto~y·
matters
which
has taken
place
it
is
desirable
that
I make a
specific
order
with
respect to
the
plaintiff's
further
and
better affidavit
of
documents.
In those circumstances
I
will
make
an
order
that
the
(-~)
first
plaintiff file
and
serve
a
supplementary
affidavit
of
documents
within fourteen
days
of the date of
my·
order~
(
( )
'--...
__
_/
Plaintiff's
application for further
and
better
particulars
ofpara.
6
of
defence
Paragraph
6
of
the
defence
is
in the following terms:
"In regard
to
paras.
8
and
9
of the
Statement
of
Claim,
the
First
Defendant
admits,
in
the
course
ofthe
employment,
at
various times,
copying
the
First
Plaintiff's
information,
and
taking
away
from
the
First Plaintiff's
premises
at
Level
24, Lennons
Plaza,
66 Queen
Street,
Brisbane,
or
its
previouspremises
at
180 Queen
Street,
Brisbane,
documents
containing the
First Plaintiff's
information,
although the
First
Defendant
denies
that
any
of the
First Plaintiff's
information
was
copied
by
the
First
Defendant,
or
taken
from
the
First Plaintiff's
premises
by
the
First
Defendant,
without the
First
Plaintiff's
authority or consent."
The
request for particulars
was
contained
in: a
letter
from
the
plaintiff's solicitors
of 13th April
1993;
it
was
in
the following terms:
"We
refer to
your
client's
Defence and
ask
that
you
provide the following further
and
better particularsof para.
6
thereof:
1 •
Provide
particulars of thewhich
the
first
Defendant
Plaintiff's
information.
'variouscopied times'
atthe First
2. Provide particulars of the 'various times' at
which the First Plaintiff (sic) took away from
-- 12 of 22 --
3.
10
-the
First
Plaintiff's.
premises
documents
containing the
First Plaintiff's
information.
Provide
··particulars of
~nformation
which
was
Defendant.
the
First
copied
by
Plaintiff's
the
First
4.
Provide
particulars
of the
documents which
the
First
Defertdant
took_ away -
from
the
First
Plaintiff's
premises.
5.
With
respect
to
each
occasion
on which
the
first
defendant copied
the
First Plaintiff's
information, and/or
took
away
such
information
f:rom.the
First.Plaintiff's
premises,
state:
(a)
the
·date
on which
the
First Plaintiff
gave
its
authority
or
consent
to
the
copying
and/or the taking
away
of
such
information
from
the
First Plaintiff's
premises
by
the
First
Defendant;
(b)
who_on-behalf
of the
First Plaintiff
gave
the
First
Defendant
the
authority or
consent;
(c)
the place
which
the
First Plaintiff
gave
its
authority or
consent;
(d)
was
such consent
or authority
given
orallyor in writing;
(e) _if wholly
or partly oral,
state that partof the
consent
or·
authority
which
was
given
orally;
(f)
if
the authority or
consent
was
wholly
or
partly in
writing:
-
(i)
state-
that part
of consent
or
authority
which
was
in writing;
(ii)
identify,
by
reference to date,author
and
addressee, the
paper
writings
which
are said to contain
the written
consent or authority;
(i~i)
produce
for inspection
and provide
a
.
copy
of
_
any such document
-or paper
writing."
The
relevant response
was
in the
letter
from
the
defendants' solicitors of 23rd April
1993;
relevantly
it
was
. ,
to the following effect:
0
0
0
-- 13 of 22 --
(_)
l)
C_/,
1 1
"1
and
2
At
this
time,
the
First
Defendant
is
unable
to
provide
any
further
and
betterparticulars
of the 'various times'
at
which he
copied
the
First
Plaintiff's
information,
or
took
away
from
the
First
Plaintiff's
premises
documents
containing
the
First Plaintiff's
information,
save
of
course
for
the
qualification
evident
inthe
First
Defendant's pleading
that
the
'various
times'
were
during
the
course
of
the
First
Defendant's
employment by
the
First
Plaintiff;
3
and
4
The
First Plaintiff's
information
which
was
copied
or
taken
away
from
the
First
Plaintiff's
premises
by
the
First
Defendant
consisted of
extracts
from
the
First Plaintiff's
client
recording
system
containing the
name
and
address
of
clients
of the
First Plaintiff;
5
(a)
The
First Plaintiff
first
gave
its
authority
and
consent
(which
authority
and
consent
was
never revoked
during thecourse
of the
First
Defendant's
employment
by
the
First Plaintiff)
to
the
copying
and/or taking
away
of information
from
the
First Plaintiff's
premises·
by
the
First
Defendant
in or
about
December
1988;
(b)
Ian
Elcock;
(c)
180 Queen
Street,
Brisbane
in
the
State of
Queensland;
(d)
orally."
That brought
a
response
from
the
solicitors
for the
plaintiff
in
their letter
of
27th
April
1993,
to
following
effect:
"Insofar as our
client's
Request
for Further
and
Better Particulars is
concerned,
we
do
not consideryour
client's
response adequate.
As
to requests
numbered
1
and 2, your
client's
response
that
it
is
unable
at this
time
to
provide
any
further
and
better particulars of the 'various times'
at
which
he copied the
first plaintiff's
information
is
not
sufficient.
With
respect to requests
numbered 3 and 4, your
client
should
state
with particularity those partsof the extracts
from the
first plaintiff's client
-- 14 of 22 --
12
recording
system
which were
copied
or
taken·
away
from
the
first
plaintiff's
premises."
In
a
reply
dated 4th
May
1993
the
solicitors
for
the
defendants
asserted
that
they
had
sufficiently
answered
the
request for
further
and
better particulars
but,
in
order
to
avoid
any
unnecessary waste
of
time
and
cost,
provided
some
additional
information as follows:
"1
and
2
'"
3
and
4
As we
have
previously
said,
at this
time,
the particulars
provided
by
the
First
Defendant
are the
best
particulars
he
can
provide.
The
First
Defendant
was
employed
by
the
First Plaintiff,
as
its
General
Manager,
between August,
1988
and
November,
1991.
One
of the
First
Defendant's
tasks,
amongst.
others,
as
General
Manager,
was
to
develop
a
direct
mail marketing
strategy for the
First
Plaintiff,
and once
that strategy
was
developed,
to
implement
a
direct
mail
marketing
programme on
behalf of the
First
Plaintiff.
At
diverse
times throughout
·the
course
of his
employment by
the
FirstPlaintiff
(the dates of
which
as
we
have
previously
_
said
the
First
Defendant
cannot,
at this
time,
further
particularise)
the
First
Defendant took
the
Plaintiff's
information
home
with
him
to
complete
work
after
hours
on
the
development
of
the
direct
mail marketing
strategy,
and
thereafter,
on
its
implementation.
We
refer
you
to the
comments made
above
in
relation to the
Supplementary
Affidavit of
Documents. The
extracts
copied
or
taken
home by
the
First
Defendant
consisted of
extracts containing
some
of the
names
and
addresses of the
First Plaintiff's clients
(again, see the enclosed
extract)."
The
final letter
to
which
it
is
necessary
to refer
is
one
from
the
solicitors
for the
plaintiff to the
solicitors
for
the defendants of 11th
May
1993.
Relevantly for present
purposes
it
said:
"2. In para.
6
of your
client's
Defence the First
Defendant admits that at 'various times' in the
0
0
(_)
G
-- 15 of 22 --
0
(_)
( )
'"-.. ___ /
13 '
course of his employment he copied the First
Plaintiff's information and took it away from
the First Plaintiff's premises.
We have requested your client to provide
further and better particulars of the 'various
times' at which he copied and took away from
the First Plaintiff's information from the
First Plaintiff's premises. In response, your
client has stated that the best particulars it
can provide is that the 'various times' or
during the course of the First Defendant's
employment by the First Plaintiff~
Your client should, at the very least, provide
the following particulars:
(a) The number of times he copied the First
Plaintiff's information.
(b) The number of times he took. away the First
Plaintiff's information from the First
Plaintiff's premises.
(c) The frequency with which he copied the
First Plaintiff's information.
(d) The frequency with which he took away the
First Plaintiff's · information from the
.First Plaintiff's premises."
I should say that during the course of argument counsel
for the plaintiff stated that his client was "satisfied with
the response to para. 5" of the initial request. All that
really remained in issue were the matters highlighted by the
above extract from the letter of 11th May.
In dealing with this application it must be remembered
that it is only the first defendant who knows what he did with
the plaintiff's information. The plaintiff can be taken to
know what information it had, but it does not know precisely
what the first defendant did with that information. Findings
against the defendants could be made based on circumstantial
evidence, but that only highlights the necessity for the first
-- 16 of 22 --
14
defendant
giving'full
and
precise
particulars
of his relevant
conduct.
In
,my
view
the
first
defendant
has
not addressed
specifically
the matters
raised in
the
letter
of
11th
May
1993
in
providing
the
particulars
he
has given
of
para.
6
of
his
de:eence
..
It
is
important
for the
plaintiff
to
know
whether
the
i.n.formation.
was
·copied·
and/or ·taken
away
on
only
one
occasion
or.
on
a .
number
..
of occasions.
If
on
a
number
of
occasions,:
it
is
·important for. the
plaintiff
to
know,
and
the
0
first
defendant should
be
able·to
answer, whether such
conduct
occurred
regularly
-or. only
infrequently. Certainly
some
0
approximation should
be
able
to
be
given
of the
total
number
of
times_-those·events
occurred.
Further, the
first
defendant should
be
able
to
state
with
greater precision
what
information
was
"extracted"
from
the
plaintiff's
information.
Reference
is
made
to
"names
and
addresses"
in the
particulars
given, but
there
is
nothing
to
0
limit
the
scope
of
information taken
to
names
and
addresses.
In
all
of
those circumstances
I
have
come
to the
..
G
conclusion
that
the
first
defendant should provide
further
and
better particulars
of the
defence as requested,
and
I
will
order
that
the
first
defendant provide within fourteen
days
from
the date of
my
order further
and
better particulars of
..
para.
6
of the defence as sought
in paras. 1, 2, 3, and
4
of
the request of 13th April
1993 and
para.
2
of the
letter
of
11th
May
1993.
-- 17 of 22 --
15
Further
and
better
discovery
by
First
and
Third
Defendants
The
original
Notice Requiring Discovery
was
dated
20th
August 1992.
In
due
course
an
affidavit
was
filed
and
served, but
by
letter
dated
14th
April
1993
the
solicitors
for:
the
plaintiff
contended
that
the
affidavit
on
behalf of the
defendants
was
inadequate;
reference
in
particular
was
made
to
the
absence
of
any
"extracts
of the
First
Plaintiff's
client
lists
which were
previously
in
their
possession''.
The
~)
defendants'
solicitors
responded
by
letter
of
23rd
April
1993,
enclosing
a
Supplementary
Affidavit of
Documents by
the
first
()
( )
( )
defendant. Paragraphs
3
and
4
of
that
Affidavit
were
in
the
following terms:
"3.
I
have had,
but
have
not
now,
in·my
possession
or
power
the
documents
relating to
the matters
in question
in
this
cause
set
forth in
Schedule
·
2
hereto.
4.
The
last
mentioned
documents were
last
in
my
possession
or
power on
or
about
the date
that
they
were
posted
to the
persons
to
whom
they
were
addressed,
or returned
to
the
Plaintiff'ssolicitors
on
May
21,
1992."
All
that
is
stated in
Schedule
2
is
the following:
"Extracts of the
First Plaintiff's
address
list
for
its
clients."
In
a
letter
of
27th April
1993
the
solicitors
for the
plaintiff stated that
they did "not consider
that
the
description of the
documents
set
out in
Schedule
2
is
sufficient."
They
asked the
solicitors for the defendants to
"identify with
particularity the relevant extracts of the
first plaintiff's
address
list."
In
their reply of 4th
May
the solicitors for the defendants asserted that the
description of documents in Schedule 2 was
"sufficient".
The
-- 18 of 22 --
16
letter
enclosed.an
extract
from
anc
address
list.
The
letter
went on
to
say
that
it
"was
extracts similar
to
that
exhibit"
which
the
first-defendant
once
h~d
in
his_power.
The
solicitors
..
for
the
plaintiff
responded
in
a
letter
of
11th
May
1993
by
pointing
out
..
that
the
description in
the
Supplementary. A_ffidavi
t
did not enable
the
plaintiff
to
identify
the
documents.
It
therefore asserted
that
something
further
had
to
be
supplied._
· On
this part
_of
the
application
counsel
fo~
the
plaintiff
c=)
referred to
a
letter
of
12th
May
1992
from
the
then
solicitors
for the
defendants
to
_the
solicitors
for the
plaintiff.
In
that
·letter
reference
was
made
to
mailing
campaigns
of the
0
third
..
defendant during the
period_
March
to
May
1992.
It
would
appear
to
be
those
campaigns which
are
at
the
core
of the
plaintiff's
allegations that
its
confidential
information
was
used
by
the defendants.: In
that
letter
of 12th
May.
reference
is
made·_
to "a.
list"
and
"a mailing
list"
with
respect
to
the
0
condpct
of the defendants.
In those circumstances the
first
and
third
defendants
should be
ordere~
to
file
and
serve
a
supplementary
affidavit
()
of.·_
documents;
clearly
the
affidavit filed
to date
is
deficient.
·
There
was some
argument
as
to
whether
or not the
supplementary
affidavits
which
are to
be
filed
by
each
side
should contain references to financial accounts
and
other
documents,
including annual returns of the
companies
in
• <
question.
Each counsel broadly contended
that
such documents
-- 19 of 22 --
c·,
(j
()
17
were discoverable by the opposite party, but were not material
documents so as to be discoverable by his side ..
So far as the plaintiff's case is concerned it is
relevant, at least on the question of quantum of damages, to
know how its profitability has been affected by any proven use
by the defendants of confidential information. It follows, in
my view, that the financial records of the plaintiff insofar
as they indicate the level of its trading are discoverable.
Further, it is also relevant for the plaintiff to
establish the extent to which the trading of the third
defendant increased at about the time of the . alleged use of
the confidential information. Again it seems ;to me that the
financial·- records of the third defendant insofar as they
indicate -the level of trading and profitability of the
business ~re discoverable.
However, and this was largely conceded by each counsel at
the end of argument, documents such as the annual returns of
the companies would not be material or relevant and therefore
would not be discoverable.
( ' I do not propose to say anything more with respect to
specific documents. It is now up to each side to file a
supplementary affidavit of documents in the light of what I
have said~ The sufficiency of discovery can then be assessed
in the light of all available information.
Costs
It is obvious that the defendants have substantially
failed on their application, though I am making an order that
the first plaintiff provide further and better discovery.
-- 20 of 22 --
18
Generally,
for
the
reasons given,
I
have
held
.
that
the
defendants
were
premature
in
bringing
their
application.
The
first
plaintiff
has
.been
substantially
successful
on
its
application~
I
must
now
determine
the appropriate order for costs in
all
the circumstances.
Having
given
the matter
careful
consideration
I
have
come
to
the
conclusion
that
the
appropriate order
is
to
make
no
order
as
to costs
on
the
defendants
1
application,
so
that
each
party
will
bear
its
own Q
costs thereof.
On
the
application of the
first
plaintiff
there
should
be
an
order
that
the
first
and
third
defendants
pay
the
applicant's
costs of
and
incidental to
the
application
to
be
taxed.
Orders
( 1 )
On
the
summons
of the
first
.and
third
defendants
filed
7th
May
1993
I
order
that
the
first
plaintiff file
and
serve
a
supplementary
affidavit
of
documents
within
fourteen
days
of·the
making
of
this
order.
No
order
as
to costs.
(2)
On
the
summons
of the
first plaintiff
of
11th
May
1993
I
order
that:
(i) the
first
defendant provide within fourteen days
of
the
making
of this
order further
and
better
particulars of para.
6
of the defence delivered 19th
August 1992
as sought
in paras.
1, 2,
3
and
4
of the
request of 13th April
1993 and
para.
2
of the
letter
of 11th
May 1993;
0
0
-- 21 of 22 --
..
()
(J
19
(ii) the first and third defendants file and serve a
supplementary affidavit of documents within fourteen
days of the making of this order;
(iii) the first and third defendants pay the first
plaintiff's costs of and incidental to the summons
to be taxed.
-- 22 of 22 --
Official source: https://www.sclqld.org.au/caselaw/QSC/1993/151