Tempcool Engineering v Chong Vincent: Misuse of Confidential Information & Unlawful Conspiracy

In Tempcool Engineering (S) Pte Ltd v Chong Vincent and others, the High Court of Singapore ruled in favor of the Plaintiff, Tempcool Engineering, against two former employees, Chong Vincent and Woon Wee Seng, and their company, U.B. Zanotti System Pte Ltd (UBZ). Tempcool alleged that the Defendants misused its confidential information and trade secrets. The court found that Vincent misused Tempcool's confidential information by sending Disputed Drawings to Woon, who knowingly procured Vincent's breaches of confidence. UBZ was also held liable as Woon's knowledge was imputed to it. The court found the defendants liable for breach of confidence, breach of duty of good faith and fidelity, and unlawful conspiracy. The court ordered that damages be assessed.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Tempcool Engineering sues former employees for misusing confidential information. The court found the defendants liable for breach of confidence and unlawful conspiracy.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Tempcool Engineering (S) Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
Chong VincentDefendantIndividualLiable for misuse of confidential informationLost
Woon Wee SengDefendantIndividualLiable for misuse of confidential informationLost
U.B. Zanotti System Pte LtdDefendantCorporationLiable for misuse of confidential informationLost

3. Judges

Judge NameTitleDelivered Judgment
Edmund LeowJudicial CommissionerYes

4. Counsels

Counsel NameOrganization
Ronnie TanCentral Chambers Law Corporation
Beitris YongCentral Chambers Law Corporation
Eddie KohS H Koh & Co

4. Facts

  1. Tempcool is in the business of engineering, supply, and design of refrigeration and air-conditioning systems.
  2. Vincent, a former Tempcool employee, sent confidential drawings to Woon, another former employee working for a competing business, UBZ.
  3. The Disputed Drawings contained Tempcool's trade secrets and confidential information.
  4. Woon instructed Vincent to take Tempcool's confidential information, including the Disputed Drawings.
  5. Vincent accepted a job offer from Woon at UBZ while still employed at Tempcool.
  6. The Defendants misused Tempcool's Pricing Information, including the Arneg Quotation and Pricing Summary.
  7. The Defendants planned a total duplication of Tempcool’s archive.

5. Formal Citations

  1. Tempcool Engineering (S) Pte Ltd v Chong Vincent and others, Suit No 437 of 2013, [2015] SGHC 100

6. Timeline

DateEvent
Tempcool Engineering (S) Pte Ltd began operating.
Woon Wee Seng joined Tempcool as an assistant engineer.
Vincent Chong joined Tempcool as an assistant engineer.
Woon Wee Seng resigned from Tempcool.
Woon offered Vincent a job at UBZ.
Tempcool employee discovered messages on Vincent's iPad.
Tempcool obtained an interim injunction against the Defendants.
Suit No 437 of 2013 filed.
Ken Ken provided a letter confirming UBZ did not participate in any tender.
Shop & Save Sdn Bhd provided a letter regarding Woon's assistance.
Tempcool's lawyers requested documents from the Defendants.
Defendants' counsel replied regarding the document request.
Oral judgment delivered to the parties.
Decision Date

7. Legal Issues

  1. Breach of Confidence
    • Outcome: The court found that the Defendants had breached their duty of confidence by misusing Tempcool's confidential information.
    • Category: Substantive
    • Sub-Issues:
      • Misuse of confidential information
      • Obligation of confidentiality
      • Quality of confidentiality
  2. Breach of Duty of Good Faith and Fidelity
    • Outcome: The court found that Vincent, as an employee of Tempcool, had breached his duty of good faith and fidelity.
    • Category: Substantive
  3. Unlawful Conspiracy
    • Outcome: The court found that the Defendants were liable for unlawful conspiracy.
    • Category: Substantive

8. Remedies Sought

  1. Injunction
  2. Damages

9. Cause of Actions

  • Breach of Confidence
  • Breach of Duty of Good Faith and Fidelity
  • Unlawful Conspiracy

10. Practice Areas

  • Commercial Litigation
  • Breach of Confidence
  • Employment Disputes

11. Industries

  • Engineering
  • Refrigeration
  • Air-Conditioning

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Coco v A N Clark (Engineers) LtdN/AYes[1969] RPC 41N/ACited for the elements of an action in breach of confidence.
Invenpro (M) Sdn Bhd v JCS Automation Pte LtdN/AYes[2014] 2 SLR 1045SingaporeCited for the elements of an action in breach of confidence and the necessity for confidential information to be patentable or inventive to have a quality of confidentiality.
Faccenda Chicken Ltd v Fowler and othersN/AYes[1987] 1 Ch 117N/ACited regarding the implied obligation against the use or disclosure of confidential information for employees.
Abdul Latif bin Mohammed Tahiar (trading as Canary Agencies) v Saeed Husain s/o Hakim Gulam Mohiudin (trading as United Limousine)N/AYes[2003] 2 SLR(R) 61SingaporeCited for the proposition that parties stand by their pleaded case and any defect in the pleadings cannot be cured by any averments in affidavits.
Vestwin Trading Pte Ltd v Obegi MelissaN/AYes[2006] 3 SLR(R) 573SingaporeCited regarding whether detriment is required depends on the circumstances of the case.
Man Financial (S) Pte Ltd (formerly known as E D & F Man International (S) Pte Ltd) v Wong Bark Chuan DavidN/AYes[2008] 1 SLR(R) 663SingaporeCited for the implied term that the employee will serve his employer with good faith and fidelity.
EFT Holdings, Inc and another v Marinteknik Shipbuilders (S) Pte Ltd and anotherN/AYes[2014] 1 SLR 860SingaporeCited for the elements of unlawful conspiracy.

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

  • Confidential Information
  • Trade Secrets
  • Breach of Confidence
  • Duty of Fidelity
  • Unlawful Conspiracy
  • Disputed Drawings
  • Pricing Information
  • Filing Labels
  • Employment Agreement

15.2 Keywords

  • confidential information
  • trade secrets
  • breach of confidence
  • employment law
  • unlawful conspiracy
  • Tempcool
  • Chong Vincent
  • Woon Wee Seng
  • UBZ
  • Singapore High Court

17. Areas of Law

Area NameRelevance Score
Breach of Confidence95
Inducement of Breach of Contract70
Conspiracy by Unlawful Means60
Contract Law40
Business Law30
Corporate Law20

16. Subjects

  • Confidentiality
  • Employment
  • Torts
  • Conspiracy
  • Intellectual Property