A marketing manager's breach of contract and confidentiality obligations, entailing unlawful interference and enticing employees, entitles the plaintiff to significant damages for losses incurred.

Introduction

[1] The plaintiff is a company incorporated in Malaysia under the Companies Act 1965 with its registered address in Selangor.

[2] The defendant is an individual residing at Kepong Baru, Kuala Lumpur and, at all material times, was the marketing manager of the plaintiff.

[3] In this civil suit, the plaintiff is claiming against the defendant:

(a) general damages;

(b) aggravated damages;

(c) exemplary damages;

(d) an order for an injunction that by the defendant by himself, his agent and/or servant be restrained from doing any act which could damage the reputation of the plaintiff and from encouraging/influencing the plaintiff's employees to leave the employment of the plaintiff;

(e) costs; and

(f) any other reliefs which are deemed fit and proper by this Honourable Court.

[4] The defendant in his statement of defence prays that the plaintiff's claim be struck out with costs.

[5] The plaintiff called five witnesses while the defendant called two witnesses in support of his defence. The defendant himself gave evidence in the witness box.

The Facts Of The Case

[6] Madam Tan Sing Hong (PW1), the general manager of the plaintiff by way of a letter styled as an offer of appointment dated 21 August 1995 offered to the defendant the position of marketing manager of the plaintiff upon the terms and conditions set out in that letter of offer (see pp 1 to 4 of bundle "B" marked as exh P1).

[7] On 21 August 1995, the defendant accepted that job offer and he signed by way of an acceptance pledging his loyalty to the plaintiff in the following words (see exh P1 at p 4 of bundle "B"):

"I hereby understand and accept the foregoing terms and conditions of employment and undertake to devote the whole of my energies, attention and time to develop and extending the business of the Company and shall in all matters act loyally and faithfully to the Company. As such I shall not engage, be interested or concerned either directly or indirectly as principal, agent, employee or otherwise in any other services or business whatsoever in the same trade or receive commission, profit or remunerations of any kind without first obtaining written consent from the Company. I will commence work on August 23, 1995."

[8] By way of a letter dated 30 July 1996 (see pp 5 to 6 of bundle "B" marked as exh "P2" ) addressed to the defendant, PW1 confirmed the appointment of the defendant as the marketing manager of the plaintiff. Again, the defendant pledged his loyalty to the plaintiff in these words (see exh P2 at p 6 of bundle "B"):

"I hereby understand and accept the foregoing terms and conditions of confirmation and undertake to devote the whole of my energies, attention and time to develop and extending the business of the Company and shall in all matters act loyally and faithfully to the Company. As such I shall not engage, be interested or concerned either directly or indirectly as principal, agent, employee or otherwise in any other service or business whatsoever in the same trade or receive commissions, profit or remunerations of any kind without first obtaining written permission from the Company."

[9] The cr