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Sectorguard Plc v Dienne Plc: ChD 3 Nov 2009

The claimant alleged misuse of confidential information in the form of its customer list, and its charges to them. The defendant company was run by former employees of the claimant. A later allegation was made of accessing the defendant’s private emails. The defendant said that the claimant was racially motivated and should not have conduct of contempt proceedings.
Held: The claimant had avoided admitting or denying the reading of the emails and the racial motivation. The application for committal had no legitimate purpose: ‘Committal proceedings are an appropriate way, albeit as a last resort, of seeking to obtain the compliance by a party with the court’s order (including undertakings contained in orders), and they are also an appropriate means of bringing to the court’s attention serious rather than technical, still less involuntary, breaches of them. In my judgment the court should, in the exercise of its case management powers be astute to detect cases in which contempt proceedings are not being pursued for those legitimate ends. Indications that contempt proceedings are not so being pursued include applications relating to purely technical contempt, applications not directed at the obtaining of compliance with the order in question, and applications which, on the face of the documentary evidence, have no real prospect of success. Committal proceedings of that type are properly to be regarded as an abuse of process, and the court should lose no time in putting an end to them . .’
The committal application was refused and the defendant released from the part of the undertaking which had proved impossible of performance.

Briggs J
[2009] EWHC 2693 (Ch)
Bailii
England and Wales
Citing:
DistinguishedBIBA Limited v Stratford Investments Limited 1973
The court was asked whether a breach of an undertaking gave rise to the same consequences under RSC Order 45 rule 5 as the breach of an order. . .
CitedAttorney General of Belize and others v Belize Telecom Ltd and Another PC 18-Mar-2009
(Belize) A company had been formed to manage telecommunications in Belize. The parties disputed the interpretation of its articles. Shares had been sold, but the company was structured so as to leave a degree of control with the government. It was . .
CitedKJM Superbikes Ltd v Hinton CA 20-Nov-2008
The claimant had been sued for the misuse of trademarks by selling motorcycles imported via a parallel market. It claimed that the defendant had filed false evidence in that action, and now appealed a refusal by the judge to bring contempt . .
CitedAttorney-General for Tuvalu v Philatelic Distribution Corporation Ltd CA 1990
Where a company is ordered not to do certain acts or gives an undertaking to the like effect and a director of that company is aware of the order or undertaking he is under a duty to take reasonable steps to ensure that the order or undertaking is . .
CitedAdam Phones Ltd v Goldschmidt and Others CA 17-Aug-1999
Especially given the new emphasis on proportionality, a party who brought contempt proceedings, in the case of an inadvertent breach of an injunction, with a view solely to creating costs for the other party, could expect to face those costs . .
MentionedBhimji v Chatwani 1991
. .
CitedDow Jones and Co Inc v Jameel CA 3-Feb-2005
Presumption of Damage in Defamation is rebuttable
The defendant complained that the presumption in English law that the victim of a libel had suffered damage was incompatible with his right to a fair trial. They said the statements complained of were repetitions of statements made by US . .
CitedRe Hudson, Hudson v Hudson ChD 1966
The plaintiff’s marriage had been dissolved and her former husband was ordered to pay her maintenance at a specified rate. The husband subsequently filed evidence that he was unable to comply with that order but offered to undertake to pay one-third . .

Lists of cited by and citing cases may be incomplete.

Information, Contempt of Court

Updated: 31 October 2021; Ref: scu.377355

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