Hi-P International Ltd v Tan Chai Hau: Interim Injunction for Breach of Confidentiality and Non-Solicitation Clauses

In Hi-P International Ltd v Tan Chai Hau, the High Court of Singapore heard a case where Hi-P International Limited sought an interim injunction against Tan Chai Hau, Shih, Cheng-Chieh, and Tan Ping Eng, its former employees, for allegedly breaching confidentiality, non-solicitation, and non-compete clauses in their employment contracts. The plaintiff claimed that the defendants, now associated with Kunshan Kersen Science & Technology Co, Ltd, misused confidential information. Justice Choo Han Teck granted the plaintiff's application for leave to adduce further evidence and granted in part the interim injunction against the first and third defendants, restraining them from using or revealing specific trade secrets and confidential information. The court dismissed other prayers for injunction and reserved costs to the trial judge.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Interim Injunction Granted in Part

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Hi-P International sought an interim injunction against former employees for breaching confidentiality and non-solicitation clauses. The court granted parts of the injunction.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Hi-P International LimitedPlaintiffCorporationInterim Injunction Granted in PartPartialKong Man Er, Chua Xyn Yee, Chan Ming Li Elizabeth
Tan Chai Hau (Chen Zaihao)DefendantIndividualInterim Injunction Granted in PartPartialChristopher Anand s/o Daniel
Shih, Cheng-ChiehDefendantIndividualNeutralNeutral
Tan Ping EngDefendantIndividualInterim Injunction Granted in PartPartialPaul Seah Zhen Wei, Yeow Yuet Cheong

3. Judges

Judge NameTitleDelivered Judgment
Choo Han TeckJudgeYes

4. Counsels

Counsel NameOrganization
Kong Man ErDrew & Napier LLC
Christopher Anand s/o DanielAdvocatus Law LLP
Paul Seah Zhen WeiTan Kok Quan Partnership
Yeow Yuet CheongTan Kok Quan Partnership
Chua Xyn YeeDrew & Napier LLC
Chan Ming Li ElizabethDrew & Napier LLC

4. Facts

  1. The plaintiff, Hi-P International Limited, is a Singapore-incorporated company.
  2. The defendants are former employees of the plaintiff.
  3. The first defendant left the plaintiff's employ in April 2019 and joined Kunshan Kersen in October 2019 as CEO.
  4. The second defendant allegedly left the plaintiff's employ in October 2019 and joined Kunshan Kersen sometime between end-2019 and early-2020.
  5. The third defendant's last day with the plaintiff was 6 September 2019, and he joined Kunshan Kersen in October 2019 as its Tooling Senior Director.
  6. The plaintiff claims the defendants breached confidentiality, non-solicitation, and non-compete clauses.
  7. The plaintiff alleges the first defendant induced the second and third defendants' breaches of contract.
  8. The first defendant asked Mr Chen Wang for assistance with his work laptop shortly before leaving the plaintiff's employment.
  9. The first defendant's request required Mr Chen Wang to format the laptop’s hard drive, which would result in a loss of data.
  10. The plaintiff was informed that it had been successfully selected for the tender, but it eventually lost the same to Kunshan Kersen.

5. Formal Citations

  1. Hi-P International Ltd v Tan Chai Hau and others, Suit No 224 of 2020 (Summonses No 1569, 1572 and 2025 of 2020), [2020] SGHC 128

6. Timeline

DateEvent
First defendant left plaintiff's employ
Third defendant's last day with plaintiff
First defendant joined Kunshan Kersen as CEO
Third defendant joined Kunshan Kersen as Tooling Senior Director
Second defendant left plaintiff's employ
2nd affidavit of Zheng Yunfan filed
1st Defendant’s Request for Further and Better Particulars
Statement of Claim and Reply to Defence of the 3rd Defendant filed
Plaintiff discovered Mr Chen Wang's evidence
Hearing date
Judgment reserved

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that there was a serious question to be tried as to whether the confidentiality clause in the first and third defendants’ employment contracts are enforceable, and whether the said defendants had breached the clause.
    • Category: Substantive
    • Sub-Issues:
      • Breach of confidentiality clause
      • Breach of non-solicitation clause
      • Breach of non-compete clause
  2. Enforceability of Restraint of Trade Clause
    • Outcome: The court found that there was a serious question to be tried as to whether the confidentiality clause in the first and third defendants’ employment contracts are enforceable.
    • Category: Substantive
  3. Interim Injunction
    • Outcome: The court granted in part the interim injunction against the first and third defendants, restraining them from using or revealing specific trade secrets and confidential information.
    • Category: Procedural

8. Remedies Sought

  1. Damages
  2. Permanent Injunction

9. Cause of Actions

  • Breach of Contract
  • Inducement of Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Wireless telecommunications
  • Consumer electronics
  • Automotive
  • Computing

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

  • Confidentiality
  • Non-solicitation
  • Non-compete
  • Interim injunction
  • Trade secrets
  • Kunshan Kersen
  • Employment contract
  • Restraint of trade

15.2 Keywords

  • confidentiality
  • non-solicitation
  • injunction
  • employment
  • Hi-P International
  • Tan Chai Hau
  • breach of contract

16. Subjects

  • Contract Law
  • Employment Law
  • Civil Procedure
  • Injunctions

17. Areas of Law

  • Civil Procedure
  • Injunctions
  • Contract Law
  • Confidentiality
  • Restraint of Trade