SeaCAD Technologies v Tan Siew Meng Aaron: Misappropriation of Confidential Info & Breach of Non-Competition Clause
SeaCAD Technologies Pte Ltd sued its former employee, Tan Siew Meng Aaron, and his current employer, Engineering Computer Services (S) Pte Ltd, in the High Court of Singapore, alleging misappropriation of confidential information and breach of a non-competition clause. The court, presided over by Justice Kan Ting Chiu, dismissed the claim for misappropriation of confidential information due to lack of evidence. However, the court found that Tan Siew Meng Aaron breached the non-competition clause in his employment contract by joining a competitor within one year of leaving SeaCAD Technologies. The court ordered damages to be assessed by the Registrar and costs to be paid by the first defendant.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff in part; claim for breach of non-competition clause allowed; claim for misappropriation of confidential information dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment reserved
1.5 Jurisdiction
Singapore
1.6 Description
SeaCAD Technologies sued Tan Siew Meng Aaron for misappropriating confidential information and breaching a non-competition clause. The court dismissed the claim for misappropriation but found a breach of the non-competition clause.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| SeaCAD Technologies Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff in part | Partial | Godwin Campos |
| Tan Siew Meng Aaron | Defendant | Individual | Claim Dismissed, Breach of non-competition clause | Lost, Lost | Peter Low |
| Engineering Computer Services (S) Pte Ltd | Defendant | Corporation | Claim Dismissed | Won | Peter Low |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kan Ting Chiu | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Godwin Campos | Godwin Campos & Co |
| Peter Low | Peter Low Partnership |
4. Facts
- SeaCAD Technologies deals in computer hardware, software, and accessories.
- Tan Siew Meng Aaron was employed by SeaCAD Technologies as an account manager.
- Tan Siew Meng Aaron's employment contract contained a non-competition clause.
- Tan Siew Meng Aaron resigned from SeaCAD Technologies and joined Engineering Computer Services (S) Pte Ltd.
- Engineering Computer Services (S) Pte Ltd is a competitor of SeaCAD Technologies.
- SeaCAD Technologies alleged that Tan Siew Meng Aaron misappropriated confidential information before resigning.
- SeaCAD Technologies claimed Tan Siew Meng Aaron breached the non-competition clause.
5. Formal Citations
- SeaCAD Technologies Pte Ltd v Tan Siew Meng Aaron and Another, Suit 250/2006, [2007] SGHC 192
6. Timeline
| Date | Event |
|---|---|
| Letter of appointment issued to Tan Siew Meng Aaron | |
| Tan Siew Meng Aaron tendered resignation | |
| Tan Siew Meng Aaron retracted resignation | |
| Tan Siew Meng Aaron tendered another letter of resignation | |
| Tan Siew Meng Aaron joined Engineering Computer Services (S) Pte Ltd | |
| Suit filed by SeaCAD Technologies Pte Ltd | |
| Judgment reserved |
7. Legal Issues
- Misappropriation of Confidential Information
- Outcome: The court found that the plaintiff failed to prove that the first defendant had downloaded or made copies of the plaintiff's confidential information.
- Category: Substantive
- Breach of Non-Competition Clause
- Outcome: The court found that the first defendant breached the non-competition clause by joining a competitor within one year of leaving the plaintiff.
- Category: Substantive
- Restraint of Trade
- Outcome: The court found the restraint in respect of Malaysia unjustified and invalid and is to be severed from the non-competition clause.
- Category: Substantive
8. Remedies Sought
- Damages
- Injunction
9. Cause of Actions
- Breach of Contract
- Misappropriation of Confidential Information
10. Practice Areas
- Commercial Litigation
11. Industries
- Technology
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Buckman Laboratories (Asia) Pte Ltd v Lee Wei Hoong | High Court | Yes | [1999] 3 SLR 333 | Singapore | Cited for the principle that a restraint of trade clause must protect legitimate interests and be reasonable. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Non-Competition Clause
- Confidential Information
- Misappropriation
- Restraint of Trade
- Employment Contract
15.2 Keywords
- Non-competition
- confidential information
- misappropriation
- employment
- contract
- restraint of trade
16. Subjects
- Contract Law
- Employment Law
- Tort Law
- Confidentiality
- Competition Law
17. Areas of Law
- Contract Law
- Tort
- Restraint of Trade
- Employment Law