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Prevention is better than cure

10 February 2011 / James Langford
Issue: 7452 / Categories: Features , Commercial
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James Langford emphasises the importance of robust contracts

The problems that can occur when employees seek to exploit knowledge, information, and opportunities obtained during the course of their employment for their own financial gain are highlighted in the recent case of Aerostar Maintenance International Ltd v Wilson [2010] EWHC 2032 (Ch), [2010] All ER (D) 364 (Jul).

The case involved a company director (D) who was also an employee of the first claimant company, Aerostar Maintenance International Limited (Aerostar). Although several heads of claim against a number of individuals were involved, this article is confined to a discussion of Aerostar’s claim against D for breach of fiduciary duty.

D had been involved in the negotiation of contracts on behalf of Aerostar. It was alleged that D diverted from Aerostar to a newly formed company, a business opportunity that belonged to Aerostar. Although Aerostar did not ultimately establish its entitlement to the sums claimed, it was successful in part. D accepted that he owed Aerostar a fiduciary duty as a director and that

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