Michael de Kretser Consultants v De Kretser: Breach of Fiduciary Duty & Employment Contract

Michael de Kretser Consultants Pte Ltd sued De Kretser Michael Earnleigh and Michael William Rose in the High Court of Singapore on 8 May 2008, alleging breach of fiduciary duties and breach of an employment contract. The plaintiff claimed that the defendants conspired to set up a rival company, DPR Consultants Pte Ltd, while still employed by the plaintiff. The court found both defendants liable for breaching their contractual and fiduciary duties and ordered that damages be assessed.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for the plaintiff against the first and second defendants, and further order that damages be assessed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Consultancy firm sues former executives for breach of fiduciary duties and employment contract by setting up a rival company. Judgment for plaintiff, damages to be assessed.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Michael de Kretser Consultants Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
De Kretser Michael EarnleighDefendantIndividualJudgment against DefendantLost
Michael William RoseDefendantIndividualJudgment against DefendantLost

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudgeYes

4. Counsels

Counsel NameOrganization
Lee Eng BengRajah & Tann LLP
Low Poh LingRajah & Tann LLP
Chin Wei LinRajah & Tann LLP
David Liew Tuck YinDSH Law Corporation
Joseph LeeRodyk & Davidson LLP
Ling Tien WahRodyk & Davidson LLP

4. Facts

  1. The first defendant was a director and shareholder of the plaintiff company.
  2. The second defendant was the Chief Executive Officer of the plaintiff.
  3. The defendants set up a rival company, DPR Consultants Pte Ltd, while still employed by the plaintiff.
  4. The defendants recruited staff from the plaintiff to join DPR.
  5. The defendants solicited business for DPR while still employed by the plaintiff.
  6. The first defendant failed to notify the board of the second defendant's resignation.
  7. The second defendant actively enticed junior colleagues to leave the plaintiff's employ.

5. Formal Citations

  1. Michael de Kretser Consultants Pte Ltd v De Kretser Michael Earnleigh and Another, Suit 119/2006, [2008] SGHC 66

6. Timeline

DateEvent
Employment contract signed between the plaintiff and the second defendant.
Batey proposed a merger with Burston-Marstellar.
Second defendant resigned from the plaintiff company.
Hilton Hotel Meeting took place.
Email from the second defendant to Christine Howard.
DPR Consultants Pte Ltd incorporated.
Christmas lunch at Flutes restaurant.
First defendant announced the second defendant's last day of work.
Private investigator found an unsigned letter of resignation from the second defendant.
Second defendant attended a seminar in London.
Second defendant instructed his secretary to forward magazines to the DPR address.
Judgment reserved.

7. Legal Issues

  1. Breach of Fiduciary Duty
    • Outcome: The court found that both defendants breached their fiduciary duties to the plaintiff.
    • Category: Substantive
    • Sub-Issues:
      • Conflict of interest
      • Enticement of employees
      • Solicitation of business
  2. Breach of Contract
    • Outcome: The court found that both defendants breached their contractual obligations to the plaintiff.
    • Category: Substantive
    • Sub-Issues:
      • Failure to notify resignation
      • Competition with employer
      • Taking on other employment without approval

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Fiduciary Duty
  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Consulting

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Fiduciary Duty
  • Breach of Contract
  • DPR Consultants
  • MDK Group
  • Conflict of Interest
  • Enticement of Employees
  • Solicitation of Business

15.2 Keywords

  • Breach of Fiduciary Duty
  • Breach of Contract
  • Consultancy
  • Singapore
  • Employment
  • Director
  • CEO

17. Areas of Law

Area NameRelevance Score
Fiduciary Duties95
Contract Law80
Commercial Disputes75
Company Law65
Employment Law60
Business Management Consultancy50

16. Subjects

  • Breach of Fiduciary Duty
  • Contract Law
  • Employment Law
  • Business Management Consultancy