Sean Russell appeared for the plaintiff, instructed by Stephens & Tozer Solicitors.
This decision concerns a claim against a defendant employee and her company for breach of contract and fiduciary duties, arising from the alleged solicitation of an existing and prospective client to enter into a retainer agreement. The defendant raised several arguments, most notably that she was not a party to an employment contract with the plaintiff and did not solicit any of the plaintiff’s existing or potential clients. Her Honour accordingly identified three principal issues in dispute. First, identifying the parties to the employment contract, as a preliminary matter to the breach of contract and fiduciary duties questions; second, whether the existing client was induced to enter a contract with the defendant; and third, whether the other client could be considered a ‘potential’ client of the plaintiff.
Sheridan DCJ decided each issue in favour of the plaintiff, finding that the defendant was in breach of both her contractual and fiduciary obligations. As the plaintiff withdrew its claim for declaratory relief, her Honour indicated that directions as to the future conduct of the proceedings would be heard.
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