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Vestergaard Frandsen A/S v. Bestnet Europe Ltd

[2013] UKSC 31 (2013)

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Vestergaard Frandsen A/S v. Bestnet Europe Ltd

England and Wales Supreme Court
[2013] UKSC 31 (2013)

Facts

Trine Sig (defendant), Torben Larsen (defendant), and Ole Skovmand worked for Vestergaard Frandsen A/S (plaintiff), a company that manufactured and sold insecticidal bed nets. Sig and Larsen signed employment contracts containing clauses that required them to maintain the confidentiality of Vestergaard’s trade secrets, including after employment; Skovmand did not. Sig, Larsen, and Skovmand left Vestergaard and established their own bed-net business, Intection Ltd (defendant), in Denmark. Skovmand used confidential information from Vestergaard’s database for the chemical formulations. Sig, who was involved in only the commercial aspects of the business, neither knew of Skovmand’s use of this information nor saw the information herself. Vestergaard initiated proceedings in Denmark against Intection, which was quickly dissolved. Larsen and Sig then set up a new company in England, Bestnet Europe Ltd (defendant). Vestergaard brought its suit to the English court system. The England and Wales High Court of Justice Chancery Division found that all defendants, including Sig, were liable for breach of confidence. The Court of Appeals affirmed except with regard to Sig’s liability, holding that she could not be liable if she did not receive or use the confidential information. Vestergaard appealed.

Rule of Law

Issue

Holding and Reasoning (Neuberger, C.J.)

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