Breach of Contract
The client, a multi-national manufacturer of industrial safety equipment was surprised at the sudden departure of two of its key employees, a Sales Manager and senior R & D Technician. Anecdotal evidence indicated the former employees had been in contact with one the client’s plastics suppliers. Exit interviews did not take place however, rather than ignoring their former employees’ unexpected resignations, the company sought advice from its external lawyers who had written the contracts of employment. The lawyers recommended that Linx International undertake discreet inquiries to establish the former employees’ activities.
In a classic ‘sting’ operation Linx International uncovered the true extent of the former employees’ activities and their intent to compete against their former employer. It was established that the two former employees had formed a company in their respective wives maiden names and for several months they had systematically stolen design and sales data from their employer. They had clearly breached the terms of their contract and had obtained funding and assistance for their new enterprise from the plastics supplier to manufacture equipment based on the stolen designs, which they had slightly modified. Their plan was to manufacture a range of products in direct competition with their former employers.
The evidence obtained by Linx International enabled the client to swiftly seek the appropriate protections through the Courts and minimise the potentially serious impact to its business. The matter concluded with substantial damages awarded to our client and judgements against the two offending former employees and the subsequent collapse of their new business venture.