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2025 MarsdenLR 948
HIGH COURT MALAYA KUALA LUMPUR
PAKTOR PTE LTD & ANOR – Appellant
Versus
NG SOOK EE & ORS – Respondent
[Civil Suit No: WA-22NCVC-378-06/2018]
Employees have a duty to maintain confidentiality and loyalty to their employer, with breaches leading to possible damages. Confidential information must be explicitly protected, and unauthorized use may result in liability.
Headnote:(A) Employment Law - Breach of Contract, Confidentiality, and Fiduciary Duty - The Plaintiffs sought damages, a disclosure of confidential information, and restraining orders against the Defendants, who were former employees violating confidentiality agreements and their fiduciary duties by engaging with a competing business. (Paras 1-2, 32-33, 63, 64)
(B) Legal Principles of Confidential Information - It is established that confidential information must have specific qualities, be communicated under an obligation of confidence, and unauthorized use leading to detriment is required for breach claims. (Paras 36-39)
(C) Duties of Employees - Employees must maintain confidentiality and avoid conflicts of interest during and post-employment, with specific duties outlined by employment contracts. (Paras 46-48)
Facts of the case:
The Plaintiffs made claims against their former employees for breaching confidentiality and fiduciary duties. The Defendants engaged with a competing business while employed and after departure, resulting in substantial alleged damages to the Plaintiffs. (Paras 27-30, 63)
Findings of Court:
The Defendants unlawfully accessed and utilized confidential information which breached their employment contracts and fiduciary duties. The Court awarded nominal damages of RM30,000 for the breaches, with interest at 5%. (Paras 76-77)
Issues: Key issues included the breaches of confidentiality, fiduciary duties, duty of care, and whether damages could be substantiated. (Paras 31-32)
Ratio Decidendi: The Court found the Defendants committed multiple breaches of contract and duties of confidentiality and fidelity, justifying the Plaintiffs' claims for nominal damages despite insufficient proof of substantial damages.
Result: Claim allowed with nominal damages of RM30,000 awarded, plus interest.
| Table of Content |
|---|
| 1. relief sought by the plaintiffs. (Para 1 , 2) |
| 2. trial details and witnesses. (Para 3 , 4 , 5) |
| 3. plaintiffs and defendants' details. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14) |
| 4. background of the dating co. (Para 15 , 16) |
| 5. d1's employment history. (Para 17 , 18 , 19 , 20) |
| 6. d2 to d6's employment details. (Para 21 , 22 , 23 , 24 , 25) |
| 7. employment contract terms. (Para 26) |
| 8. plaintiffs' contentions. (Para 27 , 28) |
| 9. defendants' rebuttals. (Para 30 , 31) |
| 10. plaintiffs' burden of proof. (Para 32 , 41) |
| 11. confidential information elements. (Para 36 , 37 , 38 , 39 , 40) |
| 12. contract terms and breaches. (Para 43 , 44 , 46) |
| 13. fiduciary duties discussed. (Para 47 , 48 , 49 , 50 , 52 , 53) |
| 14. evidence of duty breaches. (Para 51 , 62 , 63) |
| 15. damages claims and proof. (Para 65 , 66 , 70 , 71 , 72 , 73 , 74) |
| 16. summary of damages awarded. (Para 77 , 78 , 79 , 80) |
| 17. rulings on admissibility and nexus. (Para 86 , 87 , 88 , 89 , 90) |
(After Full Trial)
Introduction
[1] The Plaintiffs are seeking, among other things, for the following reliefs:
(a) Damages (General, Aggravated and exemplary) damages;
(b) That the 1st to 6th Defendants and the 7th Defendant by its directors, employees, agents, and/or successors-in-title to make full disclosure of and surrender to the Plaintiff all hardcopies and softcopies of the Plaintiffs' Confidential Information (including but not limited to the Plaintiffs' clients' name, gender, email address, phone number, birth date, height, ethnicity, marital status, occupation, annual income and profile picture ("Confidential Information") and/or documents in the 1st to 7th Defendants' respective possession and/ or records within 14 days of the service of this judgment;
(c) That the 1st to 6th Defendants and the 7th Defendant by its directors, employees, agents, and/or successors-in-title, destroy and delete all hardcopy and softcopy of the Plaintiffs' Confidential Information and/or documents in the 1st to 7th Defendants' respective possession and/or records;
(d) That the 1st to 6th Defendants and the 7th Defendant by its directors, employees, agents, and/or successors-in-title, within 7 days of compliance with para 52.4 above, file and serve on the Plaintiffs an affidavit verifying:
i. The details of the Plaintiffs' Confidential Information and/or documents in the 1st to 7th Defendants' respective possession and/or records; and
ii. The details of their respective compliance with paras 52.3 and 52.4 above;
(e) That the 1st to 6th Defendants and the 7th Defendant by its directors, employees, agents, and/or successors-in-title be restrained from using, dealing, divulging or otherwise the Plaintiffs' Confidential Information and/or documents;
(f) Costs and interest.
[2] On a balance of probabilities, this Court finds that the Plaintiffs have succeeded in proving their claim. Thus, the Plaintiff's claim is allowed with costs.
Background Facts
[3] The trial took place over the course of 14 days on 8 April 2021, 11 August 2021, 1 December 2021, 13 September 2023, 14 September 2023, 15 September 2023, 18 September 2023, 19 September 2023, 20 September 2023, 12 March 2024, 13 March 2024, 14 March 2024, 15 March 2024 and 25 March 2024.
Witnesses
[4] During the trial, a total of 15 witnesses were called:
Documents
[5] These are the documents that have been marked during the trial:
Exhibits
[6] The list of exhibits is as follows:
Parties
[7] The 1st Plaintiff (P1) is a private limited company incorporated in Singapore with a registered address at 10, Anson Road, #26-04, International Plaza, Singapore 079903 and a business address at 137 Cecil Street, #06-02 Hengda Building, Singapore 069537.
[8] The 2nd Plaintiff (P2) is a private limited company incorporated in Malaysia under the Companies Act with a registered address as Unit 26¬5, Level 26, Tower A, The Vertical Business Suites, Bangsar South City, No 8, Jalan Kerinchi, 59200 Kuala Lumpur, Wilayah Persekutuan and a business address at B-17-5 1 Medan Syed Pu
