Christmas Injunction leads to commercial windfall for young inventor who had shared Confidential Information with a relative under an Agreement they had prepared years earlier.
The client was the inventor of a commercial product that innovated services offered by a family member. An informal agreement was prepared by the client granting the family member the right to commercialise the idea in consideration for a right to income derived as well as a share interest in the business.
The agreement was poorly drafted, ambiguous in important respects and susceptible to disputation as to its interpretation.
The client had a falling out with the family member. Despite the success of the idea the family member made no payments to the client on account of income generated.
Approximately two (2) weeks before Christmas the client discovered that the family member and his then colleagues were about to sell the business including the commercial intellectual property of the client for $6.3million and that settlement was due to take place within the next few days.
Within days of being instructed Roberts Legal sought and obtained an urgent interim injunction from the Supreme Court preventing the sale unless payment to the client for his share of the business was made by the family member.
Following the issue of the injunction, Roberts Legal negotiated a commercial settlement with the family member for $1.2million achieving recovery of the client’s full entitlement under the agreement on the basis of the interpretation most favourable to the client.