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ARTICLE · 17 DECEMBER 2011

Accountant ordered to pay damages for using confidential information poach clients

Cooper Grace Ward
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The NSWSupreme Court has ordered an accountant to pay damages after he used confidential information to poach clients.

AustraliaCorporate/Commercial Law
Belinda Winter
Belinda Winter
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The New South Wales Supreme Court has ordered an accountant to pay $117,995 in damages after he used his former employer's confidential information to poach at least 776 clients.

In 2002, Mr Denis Cummins, an accountant, sold his practice to Commercial & Accounting Services (Camden) Pty Ltd (Company). Following the sale, Mr Cummins continued to work for the Company 17 hours per week.  The agreement for sale contained a clause that restrained Mr Cummins from competing against the Company for a period of at least 3 years within the radius of 10 kilometres from the business address of the Company's accounting practice.

In early 2009, Mr Cummins told the Company that he would end his employment on 30 June 2010 and that he intended starting an accountancy practice in competition with the Company.

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