Our Dispute Resolution Team can advise you and your business on the law of breach of confidence and whether or not a claim for breach of confidence has arisen.  

A situation can give rise to a potential claim in certain circumstances and there is a specific criteria that needs to be met such as that the information concerned has a necessary quality of confidence, it is communicated in circumstances imposing an obligation of confidence and that there has been an unauthorised use of information to the detriment of the owner.

In a competitive marketplace, it is common for a person to be subject to an obligation of confidence under the terms of a contract or agreement, whether written or oral, by virtue of the nature of the relationship between the owner of the information and the person in whom he or she confides.  Obligations of confidence can, therefore, exist in a number of situations such as personal relationships, business and commerce, employees and professional relationships.

The law of breach of confidence is used extensively to protect sensitive commercial information and trade secrets.  Employees owe their employers a duty of confidence either by virtue of an express term in a written contract or as a result of an implied term of fidelity and loyalty.

At Paris Smith LLP, we can advise you on whether or not there is a potential claim for breach of confidence and whether or not such steps need to be taken to protect yourself and your business.  There are various remedies available such as obtaining Injunctions either on an interim basis or permanent.

Compensatory damages are available as remedy where a breach of confidence has taken place. For further information, please contact a member of Dispute Resolution Department, who will be happy to advise you further.

Breach of Fiduciary Duties

There are occasions when the obligation of confidence overlaps with fiduciary duties and, as such, we can advise you on whether or not there has been a breach of fiduciary duties and whether or not you have a claim against a former employee.

Fiduciary duties can exist in many ways. However, commonly, fiduciary duties exist between an employer and an employee such as those duties of a Director.  In order to owe an employer a fiduciary duty, the employee must be in a position of seniority and, therefore, usually it is a duty only allowed by Directors.  However, certain employees in a position of trust can owe fiduciary duties and certainly there are occasions when senior employees below the level of Board or Directors can owe a fiduciary duty, if the role is sufficiently senior.

An employee who owes a fiduciary duty must act in the interests of his or her employer and such duties can include a duty of confidentiality, fidelity, a duty of no conflict and a duty not to profit from his or her position.

The Companies Act 2006 codifies the duties of Directors but a Director can also owe fiduciary duties either by an express or implied agreement in relation to his or her employment with the company.

A Director can also owe a common law duty as well as a statutory duty and we regularly advise businesses on potential claims against Directors for breach of their fiduciary duties.

If you require any further information or advice in respect of a potential claim, please contact a member of our Dispute Resolution Team, who will be happy to advise you further in respect of the claim and any remedies that might be available.