Breach of Confidence:

Question:What should I prove to sue for breach of confidence over misused business secrets in Ontario?

Answer:Vescio Legal Services can help if confidential business recipes, proprietary software, systems, or processes were shared under a duty of confidence and then misused, by preparing your claim around the key elements from Lac Minerals Ltd. v. International Corona Resources Ltd., Lac Minerals Ltd. v. International Corona Resources Ltd., [1989] 2 S.C.R. 574: the information had to be confidential, communicated in circumstances importing confidence, and used without authorization to the detriment of the party who disclosed it.   In practice, a paralegal will help you collect disclosure and confidentiality evidence, pinpoint the unauthorized use, and assess remedies and next steps across Ontario, including in Toronto and surrounding communities.   For a fast case review, call (416) 400-8255.

Add this website to Google Preferred Sources

Misused Business Secrets

In business, the product recipes, proprietary software, systems and processes, among many other things, may be highly valuable and the misuse of such confidential information may result in considerable harm.  Generally, breach of confidence involves the wrongful use of information that was openly shared with the party that subsequently misuses the secretive information; and in this respect, breach of confidence differs from theft of trade secrets which would involve an element of misappropriation.

Note: Please contact Vescio Legal Services by phone at: (416) 400-8255 to discuss any specific questions that you may have.

The Law

As per the case of Lac Minerals Ltd. v. International Corona Resources Ltd., [1989] 2 S.C.R. 574, a Supreme Court decision, the elements that must be proven within a breach of confidence case are:

• The information conveyed was confidential;
• The information was communicated in confidence; and
• The information was misused by the party to whom it was communicated.

Specifically, per Lac Minerals Ltd., the Supreme Court said:

As a particularly interesting example case, Cadbury Schweppes Inc. v. FBI Foods Ltd., [1999] 1 S.C.R. 142 involved the licensing of the recipe for Clamato juice by Duffy-Mott (a company later acquired by Cadbury Schweppes Inc.) to Caesar Canning who then contracted production to FBI Foods Ltd.  After Cadbury Schweppes acquired Duffy-Mott, Caesar Canning was notified of termination of the licensing agreement; however, FBI, who later acquired assets of Caesar Canning, made use of the recipe despite a lack of authorization to do so.

Conclusion

Improper use of secretive information may constitute as the tort of breach of confidence where information was confidential, information was communicated within a confidential context, and the information was then misused by the party that received the communication.