Hattons of London Limited v The Knightsbridge Collection Limited & Ors [2026] EWHC 1510 (KB)

[2026] EWHC 1510 (KB)Case No KB-2025-0002427
IN THE HIGH COURT OF JUSTICE
KING'S BENCH DIVISION
Venue Royal Courts of Justice, Strand, London, WC2A 2LLDate Friday 19 th June 2026BRUCE CARR KC(Sitting as a Deputy Judge of the High Court)
HATTONS OF LONDON LIMITEDClaimant
Mr Daniel Northall KC (instructed by Herrington Carmichael LLP) for Claimant for The Second, Third, Fourth and Seventh Defendants were not represented for The Sixth and Eighth Defendants did not appear and were not representedHearing Hearing dates: 17-20 and 23 February 2026
Approved Judgement
[1]On 20 August 2025, Mr Jonathan Glasson KC, sitting as a Deputy Judge of the High Court made an order “the Glasson KC Order” against all eight Defendants restraining them until trial or further order from using, publishing, copying, restoring, deleting, communicating or disclosing to any person “Confidential Information” of the Claimant. “Confidential Information” was defined in the Glasson KC Order as being:
“…all information of a confidential nature and not in the public domain about the [Claimant’s] trading activities, customers and personnel, information which has been given to the [Claimant] in confidence by clients and third parties, and all information provided to the [Defendant] (or any of them) on a confidential basis.”
[2]All eight Defendants were also ordered to each deliver up all documents in their possession, custody or control which contained Confidential Information or were derived from it. In addition, they were required to produce an affidavit confirming compliance with the delivery up obligations and setting out particulars of any such information as they had had in their control and the use to which this had been put other than for the purposes of employment by the Claimant. The contents of each affidavit were also to include particulars of any person to whom Confidential Information had been supplied as well as details of any person identified within the Confidential Information with whom they had had contact in connection with the First Defendant’s business.[3]The Glasson KC Order also contained directions for a speedy trial, limited to the issues of liability and equitable relief and it was these matters – and not any potential issues of quantification of damages – that were the subject of the hearing before me.[4]The First Defendant was placed into a creditors’ voluntary liquidation and was wound up on 11 August 2025. In a witness statement dated 7 January 2026, Ms Stella Davis, one of the Joint Liquidators of the First Defendant, set out the steps that had been taken by the Liquidators in order to comply with the terms of the Glasson KC Order and confirmed that all relevant documents relating to the First Defendant’s business that had been located had also been provided to the Claimant. In the light of this, and given that the Joint Liquidators had no knowledge of anything done by the First Defendant prior to their appointment, Ms Davis stated that she did not feel that there was any reason for either of the Joint Liquidators to attend the substantive hearing or participate further in the litigation.[5]On 16 January 2026, Wilkes, solicitors acting for the Joint Liquidators, wrote to the Court setting out the same position and confirming that all parties had consented to them not attending the trial. There was therefore no attendance by, or representation of, the First Defendant at this hearing.[6]The Fifth Defendant, Mohammed Kashif Aziz, whose name does not appear on the case title above, has reached terms of settlement with the Claimant and therefore also played no part in this trial.[7]The Sixth and Eighth Defendants did not attend the trial and were not represented. Each of them submitted witness statements which purported to set out the reasons for their non-attendance. In his second witness statement dated 28 January 2026, the Sixth Defendant said as follows:
“57. Due to health and personal circumstances, I will not be attending the trial in person. 58. I have therefore taken care to set out my evidence fully, clearly, and transparently in this witness statement.”
[8]No further information was provided as to the health and personal circumstances to which the Sixth Defendant had referred and there was no medical evidence before the Court which might give any insight into his condition.[9]Whilst in his first witness statement, the Eighth Defendant had referred to “illness and stress” he did so not as a reason for non-attendance at trial but on the more limited basis that this provided the explanation for “any inconsistency in recollection” that might otherwise be apparent from his evidence. In his Skeleton Argument, filed on 11 February 2026, the Eighth Defendant again made no reference to the issue of attendance at the trial. He did not however attend and did not submit any evidence to support any reasons for non-attendance.[10]The remaining Defendants all appeared in person.

Applications shortly before trial

[11]On 11 February 2026, the Second and Seventh Defendants submitted requests for reasonable adjustments/special measures relating to the conduct of the trial. The basis of the applications was that in the case of the Second Defendant, he had a “mental health vulnerability which affects [his] memory, concentration and processing speed” and in the case of the Seventh Defendant, that he was suffering from “mixed anxiety and depression and [was] currently on antidepressants.” Similar adjustments were sought by both Defendants in terms of questioning, document handling and breaks in the proceedings. I did not make any formal ruling on these requests but dealt with the matter informally by reminding Mr Northall KC, who appeared on behalf of the Claimant, that he should exercise care in the formulation of his questions for the Defendants and should allow them the opportunity to read/consider any documents before providing their answers. I also agreed to regular breaks during the course of both morning and afternoon sessions and told the Defendants that if at any time, they needed any further breaks, they should inform the Court. Thereafter, the trial proceeded without incident and neither of the two Defendants expressed any difficulty in dealing with the trial process.[12]On 12 February 2026, the Second to Eighth Defendants made a joint application seeking an adjournment of this trial or alternatively a stay of proceedings on the basis that there were “overlapping Employment Tribunal proceedings.” The application was said to have been framed “in a proportionate way: a stay/adjournment to a defined milestone…to enable fair and efficient sequencing and narrowing.” The “defined milestone” was said to be a case management hearing which was scheduled to take place in June 2026. The relevant Defendants asserted that if this trial proceeded first, there was a “real risk” of duplication of evidence, inconsistent factual findings and “one forum’s findings becoming an evidential or practical ‘anchor’ in the other forum”. I rejected the application for the following reasons:a. The application was made very late and at a point at which significant costs had been incurred and the parties were otherwise ready to proceed with the trial in this Court;b. There was no reason why, to the extent that there were overlapping factual questions to be determined, these should not be considered first in the High Court rather than the Employment Tribunal;c. In terms of the findings in one forum “anchoring” the findings in the other, this cut both ways and did not of itself provide a reason for adjourning or staying the High Court process;d. Adjournment to the “defined milestone” would not achieve anything. What would happen after the June hearing in the Employment Tribunal? Presumably the Tribunal would go no further than to make case management directions for the conduct of those proceedings;e. Given the current delays in the Tribunal system, it was likely that the full hearing of the Defendants’ unfair dismissal claims would not take place until early 2027 at the earliest.

The Claimant’s business

[13]The Claimant’s business operates within a niche market with its primary customers being individual specialist collectors of both heritage and modern (gold) coins. It markets primarily to such collectors whose details are contained within its customer database. In order to service the accounts of its customers, it employs Account Managers – their role is essentially one of selling to customers using the customer details held by the Claimant on its database. Each Account Manager has his or her own customers that are specifically assigned to them. The customer information that is stored and maintained by the Claimant includes customer contact details as well as a record of previous purchases, payment history and credit score information. An effort is also made to understand customer interests and so a record of all calls made to each customer is recorded, which may include personal information provided by that customer which can then be used as part of the process of building a rapport with that person, clearly with the ultimate aim of persuading them to purchase coins through the Claimant. The Claimant invests a substantial amount of time, money and effort in building and maintaining its customer information and, without it, the business would effectively be unable to function.[14]The business was established by its founder and director, Simon Mellinger in March 2017 after he had left a company known as the Bradford Exchange which operated in a broadly similar market. When he set up the Claimant’s business, he took with him a number of individuals who had also previously worked for the Bradford Exchange.[15]In the course of running its business, the Claimant uses a software platform known as Zoho One which provides a suite of applications covering various functions including the Claimant’s Customer Relationship Management (“CRM”) system. It also uses another platform within Zoho One known as Zoho Analytics which enables it to extract data reporting. There are two key reports that store client information on Zoho Analytics. First, there is the “Customer Base report” which will show customer data relating to customers that are assigned to an employee that is logged into the system and includes: contact owner, customer number, customer names, contact numbers, gross sale, net sales, GDPR permissions and last date order. The other is the “Agent Only Base” access to which is not restricted by the user who is logged in to the system and which includes the contact owner, customer name, customer number, GDPR status, gross sales, order count, and last order date as well as the email address. This report is not limited by user and shows all clients irrespective of who is viewing. By analysing its Zoho database, the Claimant is able to identify when either of the two reports have been accessed and, using the IP address from which such access was made, it is also able to identify the location from which this has happened. In addition, as part of the Zoho platform, users are able to communicate with each other using an internal messaging system known as ‘Cliq’.[16]In due course, the First Defendant opened its own Zoho account which can now provide evidence of its activities over the limited period in which it traded as well as evidence relating to the actions and activities of the Second-Eighth Defendants (“the Individual Defendants”) during this same period.

The First Defendant

[17]The First Defendant was incorporated on 15 October 2024. The Eighth Defendant is its sole director. Its correspondence address was, with effect from 7 February 2025, House No 2, Parkhall Business Village, Stoke on Trent and from 4 June 2025, it changed again to Office 14, Lymedale Business Centre, Lymedale Business Park in Stoke. As set out above it was placed in voluntary liquidation on 11 August 2025.

Employment of the Second to Eighth Defendants by the Claimant

[18]The Individual Defendants in this case were all previously employed by the Claimant and had worked as Account Managers, engaged in trying to persuade the Claimant’s customers to buy coins, from which they were entitled to commission payments. The dates of employment of each of them is as follows:a. Second Defendant – start date: 15 March 2021; end date: 27 June 2025;b. Third Defendant – start date: 18 June 2018; end date: 11 June 2025;c. Fourth Defendant - start date: 15 July 2019; end date: 27 June 2025;d. Sixth Defendant – start date: 15 March 2022; end date: 6 June 2025;e. Seventh Defendant – start date: 1 November 2021; end date: 6 June 2025;f. Eighth Defendant – start date: 11 June 2018; end date: 4 October 2022.[19]Each of the Defendants was employed under materially identical terms and conditions and in particular, worked subject to the following express provisions under their contracts of employment:a. A fidelity clause at clause11.1 which continued so long as the individual remained employed as follows: “You may not, without the prior written consent of the Company, devote any time to any business other than the business of the Company or to any public or charitable duty or endeavour during your normal hours of work.”b. A confidentiality clause at clause11.2 which extended beyond the period of employment as follows: “You will not at any time either during your employment or afterwards use or divulge to any person, firm or company, except in the proper course of your duties during your employment by the Company, any confidential information identifying or relating to the Company, details of which are not in the public domain”.[20]They were each also subject to implied terms as to service with good faith and fidelity and as to trust and confidence in the form that they would not without reasonable and proper cause, conduct themselves in a manner calculated or likely to destroy or seriously damage the relationship of trust and confidence as between the parties.[21]Each Individual Defendant also entered into a “Non-Disclosure Agreement” (“NDA”) relating to the use of confidential information. Each NDA contained recitals recording that the Claimant wished to disclose “Confidential Information” (as defined) to the Defendants and wished to ensure that that information was not misused or disclosed to third parties without authorisation. The recitals also recorded the Defendants as agreeing that they would accept the Confidential Information subject to the terms and conditions set out in the NDA. “Confidential Information” was widely defined in Schedule 1 of the NDA as meaning:
“Details about the trading activities, personnel and all other commercial information relating to [the Claimant]”
[22]The NDA, for material purposes, provided in each case as follows:
“1.1 In this Agreement, unless the context otherwise requires, the following expressions have the following meanings: “Confidential Information” means the information outlined in Schedule 1 and any further information designated at or before the time of disclosure by [the Claimant] as confidential, whether or not such information is of a commercially (or other) sensitive nature, and in whatever tangible or intangible form the information exists or is communicated. “Stated purposes”
Means the purposes set out in Schedule 2 for which [the Defendant] may use the Confidential Information. …….. 2.1 The [Claimant] has a commercial or other interest in all such Confidential Information as it may disclose to the [Defendant] after the parties enter into this agreement. 2.2 The [Defendant] shall, subject to the provisions of clause 7, at all times maintain as confidential and shall not use or exploit or reproduce any part or the whole of the Confidential Information directly or indirectly for any purposes other than the stated purposes without the express written consent of the [Claimant]. Such unauthorised purposes may include but are not limited to: 2.2.1 Reproducing (or attempting to reproduce) any part of the Confidential Information, or to investigate or uncover otherwise undisclosed aspects of the confidential information (including but not limited to related Confidential Information); 2.2.2 Using the Confidential Information, whether directly or indirectly, to procure (or attempt to procure) any commercial advantage for the [Defendant] or a commercial disadvantage for the [Claimant] ……… 2.5 Following the fulfilment of the Stated Purposes or, if sooner, on demand by the [Claimant], the [Defendant] shall return all Confidential Information forthwith to the [Claimant] and shall further provide a certificate to the [Claimant] certifying that no copies of the Confidential Information have been made or retained. 3. Proprietary Rights The Confidential Information and all intellectual property rights subsisting therein shall remain the property of the [Claimant] (or its licensors as appropriate) and the disclosure of the Confidential Information to the [Defendant] shall not confer upon the [Defendant] any rights whatsoever in any part of the Confidential Information. …….. 5. Term 5.1 The obligations of confidentiality set out in this agreement shall continue indefinitely, subject only to the exclusions set out in Clause 7. 5.2 As fully detailed in sub-Clause 2.5, following the expiry or termination of this agreement, the [Defendant] shall return the Confidential Information to the [Claimant] and shall ensure that no copies thereof are retained. means the information outlined in Schedule 1 and any further information designated at or before the time of disclosure by [the Claimant] as confidential, whether or not such information is of a commercially (or other) sensitive nature, and in whatever tangible or intangible form the information exists or is communicated. Means the purposes set out in Schedule 2 for which [the Defendant] may use the Confidential Information. 2.2.1 Reproducing (or attempting to reproduce) any part of the Confidential Information, or to investigate or uncover otherwise undisclosed aspects of the confidential information (including but not limited to related Confidential Information); 2.2.2 Using the Confidential Information, whether directly or indirectly, to procure (or attempt to procure) any commercial advantage for the [Defendant] or a commercial disadvantage for the [Claimant][23]Clause 7 of the NDA contains an “Exclusion and Limitation of Liability” provision, the terms of which are not relevant to the issues for determination in this trial. The definition of “Stated Purposes” as set out in Schedule 2 to the NDA is similarly not relevant.[24]The Individual Defendants were paid a basic salary to which was added an entitlement to commission on sales made. Their earnings were substantial – for example, in the period of 12 months prior to them taking sick leave on various dates between 3 February 2025 and 23 May 2025, the range of on-target-earnings for the Second to Seventh Defendants went from £78,409.43 to £280,458.08.

Periods of sick leave taken by the Second to Seventh Defendants

[25]In the period between 3 February and 23 March 2025, each of the Second to Seventh Defendants began periods of extended sick leave as follows:a. Second Defendant – 3 February 2025 (which began immediately after the completion of a one-month sabbatical);b. Third Defendant – 21 March 2025;c. Fourth Defendant – 23 May 2025;d. Fifth Defendant – 28 February 2025;e. Sixth Defendant – 3 March 2025;f. Seventh Defendant – 4 March 2025.[26]None of these Defendants returned to work for the Claimant prior to terminating their employment with immediate effect on the dates set out in paragraph 18.

Grievance submitted by the Second to Seventh Defendants and others

[27]On 30 April 2025, a collective grievance (“the Grievance”) was submitted by a number of employees of the Claimant, including, save for the Fourth Defendant, all of the Individual Defendants who were employed as at that date as well as two other employees of the Claimant – Kim Minister and Megan Wain. The Grievance contained allegations of bullying, inappropriate banter, shouting and nepotism relating to the Second, Third, Fifth, Sixth and Seventh Defendants’ Line Manager, Ms Karen Barley and her son, Tom Barley. The grievance suggested that those raising the complaint had been adversely treated over a period of seven years. Allegations of sexual harassment were then added on 30 June 2025, by which time the Fourth Defendant had (on 27 June 2025) joined the Grievance.[28]Following the submission of the Grievance, the Claimant sought expert external help in dealing with it and to that end, on 6 June 2025, appointed an experienced independent investigator, Beverely Sunderland, to look into the matters raised. She produced a detailed report which she provided to the Claimant on 7 July 2025 in which she concluded that the grievance had been brought in bad faith and that the Claimant should consider disciplinary action against those that had brought the complaint and were still employed by it. The Defendants who were party to the Grievance were notified of the outcome on 11 July 2025. Given the timeline from her appointment on 6 June and her report on 11 July, it is notable that all of these Defendants chose to resign between those two dates. It might have been expected that, if the grievance was brought in good faith and with a view to improving their working environment or ensuring that Ms Barley no longer treated them badly, they would have waited for the outcome of the grievance process in order that they could determine whether they were vindicated in their complaints.[29]A grievance appeal was then submitted on 16 July 2025 which was investigated by another external expert, Lucy Feavearyear of Mustard HR. Ms Feavearyear dismissed the appeal under the terms of a detailed report dated 18 October 2025 in which she concluded that the earlier conclusion of Beverley Sunderland that the grievance had been brought in bad faith, was a reasonable one.

Concerns raised with the Claimant regarding the activities of the First Defendant

[30]From 1 May 2025 onwards, the Claimant began to receive feedback from some of its customers which suggested that activity was being carried out by a third party in competition with the Claimant and that this might involve the use of its confidential information. A number of the customers made reference to the First Defendant and indicated that the person from that company that had made a call to them, appeared to know information relating to their purchase history. None of them appeared to know how the First Defendant may have obtained their contact details but they all said that the purpose of the calls that they had received appeared to be to persuade them to purchase coins through that company. In his First Witness Statement dated 4 July 2025, Mr Mellinger gave details of eighteen customers who had raised concerns about contact that they had apparently received from the First Defendant between 1 May and 18 June 2025. I will not set out those concerns in full but in summary, the information provided by those customers provides strong evidence that the First Defendant had gained access to detailed information relating to the Claimant’s customers including telephone numbers and knowledge of prior purchases which had been done via the Claimant.[31]In the light of those concerns, the Claimant instructed private investigators to maintain surveillance at the First Defendant’s premises at the Lymedale Business Park in Stoke on 9-13 and 16-19 June 2025. The report subsequently produced by the private investigators indicated that present at the First Defendant’s premises over this period were:a. The Second Defendant on 17 and 19 June 2025;b. The Third Defendant on 19 June 2025;c. The Fifth Defendant on 16, 17, 18 and 19 June 2025;d. The Sixth Defendant on 13, 16, 17, 18 and 19 June 2025;e. The Seventh Defendant on 13, 18 and 19 June 2025.[32]A letter before action was then sent to each of the Defendants on 20 June 2025 which was followed shortly thereafter by the resignation of the Second and Fourth Defendants (on 27 June 2025 – the date on which undertakings had been requested in the letter before action). The letters were materially in the same format and contained an allegation that the Claimant had “recently become aware of a clear and flagrant misuse of their confidential information by [the First Defendant]”. The point was also made that those Defendants who had been on long-term sick leave should not be carrying out any work. The letter then set out in some detail, the customer concerns which had come to the Claimant’s attention and reported on the outcome of what was said to be a “preliminary investigation of [the Claimant’s] IT systems” from which it appeared (in summary) that many of the Individual Defendants had been using their Claimant login details to access the Claimant’s data during periods when they were either absent from work on sick leave or had left the Claimant’s employment. 33. As suspicions were raised regarding contact having been made with its customers, the Claimant at an early stage interrogated its Zoho data in order to try to identify any evidence of improper access having been made. Mr Mellinger’s First Witness Statement sets out what had been discovered by the time that letters were sent to the Defendants on 20 June 2025 and can be summarised as follows:a. On 20 March 2025, the Claimant had carried out a password reset. As the Third Defendant was at work that day, he was issued with a new password. Those Defendants who were not at work that day, did not receive a new password. From 20 March 2025, the Third Defendant’s login details were used on multiple occasions, notwithstanding the fact that he went on sick leave from 21 March 2025;b. The Third Defendant’s login details had been used to access both the Customer Base Report and the Agent Only Base report which were held on the Claimant’s Zoho platform. In the period between 16 and 27 March 2025, this had been done on no less than 87 occasions, all of which, based on the IP address, had been from the Second Defendant’s home. Given that on at least some of these occasions (before 21 March 2025), the Third Defendant had actually been at work at the Claimant’s premises, it would follow that his log-in details had been passed on to and used by somebody else. Given also that the IP address was his home, it is more likely than not that it was the Second Defendant that was using the Third Defendant’s login details to access the two reports;c. The Third Defendant’s login details were also used on a total of 28 additional occasions between 22 and 26 March 2025 but from an IP address matching the home of the Fifth Defendant;d. On 22 March 2025, the Third Defendant’s login details were used to access the Claimant’s Zoho data at three separate IP addresses on the same day, which strongly suggest that those details had been shared amongst a number of different individuals;e. The Fourth Defendant logged in to the system on 1,4,8,22 and 23 April 2025 again from the Second Defendant’s address. He had also viewed the Claimant’s customers through Zoho One and did so on 2 June 2025 at a time at which he had been suspended from his employment with the Claimant for a matter unconnected with the issues in this trial and which coincided with accessing of such information using a wifi hotspot of the First Defendant. All of this was at a point at which he had not yet become part of the Grievance – he did not in fact join until 27 June 2025;f. The Fifth Defendant (whilst he was on sick leave): - downloaded and/or updated Zoom client system on 23 April 2025. The Claimant’s evidence is that there is no legitimate reason for him to have done this; - deleted his browsing history on his Claimant work laptop at some point prior to the Claimant’s initial investigation into potential misuse of its confidential data; - used his Claimant work laptop on multiple occasions during March 2025 (again whilst he was on sick leave which had begun on 28 February 2025); - accessed client data on his Zoho account with the Claimant on 17,18,19 and 20 March 2025; - downloaded the Agent Only Base report in a modified format which gave sight of the email addresses of customers. According to the Claimant’s evidence this can only be done by altering the settings on Zoho Analytics to add an additional “email” field or by clicking on an “email field” option when exporting the data;g. The Seventh Defendant used his Claimant work laptop at the end of March 2025 when he was on sick leave and did so at a point at which access to Zoho data had been gained from a particular IP address. He had also cleared his browsing data but the Claimant’s analysis of its own Zoho data establishes that he accessed the Zoho Analytics system on 12 and 22 February and 5, 13 and 14 March 2025 – the latter dates after he had gone on sick leave on 4 March 2025.[34]In due course, the position adopted by the relevant Defendants was that any access that had been made to the Claimant’s CRM system was done solely for the purpose of gathering information to support the Grievance. In particular, they claimed that they were looking for evidence that accounts had been moved to Tom Barley. However, Mr Mellinger’s evidence in his Second Witness Statement, which I accept, is that the information which the Defendants had accessed, did not in any event show any evidence of any such transfer. Whilst it may be the case that on perhaps one or two occasions, the information was accessed with a view to potentially finding evidence of transfer, it seems unlikely that this would have been done on multiple occasions over a prolonged period as it would have been quickly apparent that transfer information was not shown. In addition, as far as the Fourth Defendant is concerned, he was accessing the Claimant’s data as early as 2 June 2025 and yet he did not put his name to the Grievance until 27 June 2025.[35]The explanation for accessing this data given by the Fifth and Seventh Defendants also does not add up in that their reason for doing so was said to be to prepare for their return to work after sick leave. In the case of the Fifth Defendant, the evidence shows that he was accessing the Claimant’s data on 113 occasions between 11 February and 19 March 2025, which included access before he had even commenced his sick absence. As to the Seventh Defendant, his accessing of the data appears to have started on the first day of his sick absence (4 March 2025). In neither case is it remotely plausible that they were accessing the Claimant’s data as a preparatory step prior to returning to work – not only would such access appear to be something that was not necessary or appropriate for that purpose but in any event, it was done either before or on the first day on which sick absence began.[36]Returning to the letter of 20 June 2025, it then drew the attention of the Defendants to the relevant provisions of their contracts and NDAs relating to the use of confidential information (as well as identifying relevant implied terms) and concluded with first, an instruction to cease and desist from engaging in any further misuse of the Claimant’s confidential information and secondly, a requirement that suitable undertakings be provided by 4.00 pm on 27 June 2025. A holding response was sent on 27 June 2025 on behalf of the Defendants by Myers & Co, solicitors then acting for them, which was followed by a substantive response dated 2 July 2025 on behalf of the First Defendant.[37]In that letter, the Defendants’ solicitors denied that there had been any misuse of the Claimant’s confidential information and asserted that any data used by the First Defendant had been the result of the Eighth Defendant purchasing “approximately 25,000 customer records” from three different commercial sources between 7 April and 11 June 2025 or from recommendations, introductions or directly or indirectly through coin fairs. The letter did note that it might be the case that the First Defendant had “innocently received details” of the Claimant’s customers via a variety of potentially non-contentious sources. It nonetheless concluded with an offer to enter into undertakings which it was said were “suitably comprehensive to address [the Claimant’s] perceived threat to it. to avoid the need for court proceedings”.[38]Letters in similar form were sent by Myers & Co on behalf of the Individual Defendants on the same date, 2 July 2025. Taking the Second Defendant’s letter as an example, it was asserted on his behalf that:a. There had been no misuse of client data or confidential information;b. That he had been left with no option but to resign from his employment with the Claimant due to the treatment that he had received from his line manager, Ms Barley, and which had led to the Grievance being submitted on 30 April 2025;c. He had not done any work for the First Defendant;d. He had accessed some of the Claimant’s data but this was only for the purpose of accessing data relevant to his grievance, in particular to see if any of his clients had been allocated to Ms Barley’s son who was employed by the Claimant;e. He had recommended to the First Defendant, the services of a web design company, Netinspire, which was run by a friend of his;f. He had attended the First Defendant’s office but this was in order “to visit a friend” and because that office was “a convenient place for our client and others to meet to discuss the Grievance.”;g. He was prepared to offer more limited undertakings than those that had been sought by the Claimant.[39]The letter sent on behalf of the Third Defendant again raised the issue of the Grievance. He accepted that his Claimant login details had been used whilst at the properties of the Second and Fifth Defendants but this was again, only to enable the Third Defendant and his colleagues to access material relevant to the Grievance and in particular, the allegation of nepotism relating to Tom Barley. He also accepted that he had attended the First Defendant’s office but again only on the basis that this was a convenient place to meet in order to discuss the Grievance.[40]The Fourth Defendant’s letter of the same date was in broadly similar terms – denying any misuse of confidential information and placing some reliance on the existence of the Grievance. He admitted accessing the Claimant’s database on 2 June 2025 but again, only to review material that was “directly relevant to his Grievance.”[41]In his letter of the same date, the Sixth Defendant made similar references to the Grievance. He maintained that the dates on which he had been seen at the First Defendant’s office were after he had resigned from his employment with the Claimant on 6 June 2025.[42]The Seventh Defendant’s letter, again dated 2 July 2025, contained similar denials of wrongdoing and made similar reference to the Grievance. He also admitted accessing the Claimant’s data but said that this was either to review information with a view to what he might be able to do if he returned to work or was for Grievance related reasons, particularly with reference to the nepotism complaint. He again explained his presence at the First Defendant’s office on the basis that this was a convenient meeting point for discussions regarding the Grievance.[43]In the letter sent on his behalf on the same date, the Eighth Defendant also denied any misuse of the Claimant’s data and made the assertion that any data used by the First Defendant had been obtained from commercial sources or through recommendations, introductions and legitimate customer contact. The same point about the potential for innocent receipt of details of the Claimant’s customers that had been made by the First Defendant was also repeated by the Eighth Defendant. He also denied that any of the other Individual Defendants had ever been employed by the First Defendant.[44]The Claimant was not prepared to accept the explanations that had been put forward by the Defendants or to accept the more limited undertakings that had been suggested by them. The Defendants were notified by letter dated 4 July 2025, that the Claimant would be making an application for interim relief shortly thereafter.

The Interim Injunction

[45]The hearing of the Claimant’s application before Mr Glasson KC actually took place on 17 July 2025. The Judge was satisfied that, not only was this a case in which an interim injunction should be ordered, but, as set out at paragraph 2 above, also that the Defendants should be required to each serve Affidavits setting out their position with regard to the allegations of misuse of the Claimant’s confidential information. The Judgment contains the following observations (at paragraph 51): “The Claimant will be unable to plead its case with precision as to what use its confidential information has been put to without such an order. Paragraph 14 of the draft order [setting out the scope of the Affidavits required] is focused and proportionate and targeted at supporting the primary provisions of the draft order, which aim to detain and preserve relevant evidence, wherever it may now be, and put the Claimant in a position to limit future damage. D4 and D5 have agreed that damages would not be an adequate remedy. Finally, such relief could save costs. I do not accept that the requirement to providing particulars in relation to confidential information at any time is unduly onerous.”

confidential information has been put to without such an order. Paragraph 14

[46]As to the detail of what was required by way of Affidavit from each of the Defendants, the order stated that it should deal with the following matters “a. Their compliance with paragraph (11) [requiring delivery up of any of the Claimant’s Confidential Documents which were in their possession] above; b. any Confidential Documents that each has in their possession or control or have at any time had in their possession or control; c. any Device or Account upon which each stores, or has at any time stored, Confidential Information; d. the use of Confidential Documents by them other than for the purposes of their employment with the Applicant; e. any person to whom they have provided Confidential Documents, including:(1) details of the Confidential Document(s) supplied,(2) when the Confidential Document(s) were supplied;(3) to whom the Confidential Document(s) were supplied; and(4) the means by which the Confidential Documents were supplied; f. details of any person or company identified within any Confidential Documents that, by reason of their use of Confidential Documents, they have had contact with in connection with the First Respondent’s business at any time. including: (1) details of the Confidential Document(s) supplied, (2) when the Confidential Document(s) were supplied; (3) to whom the Confidential Document(s) were supplied; and (4) the means by which the Confidential Documents that, by reason of their use of Confidential Documents, they have had contact with in connection with the First Respondent’s business

Affidavits produced by the Defendants

[47]The Second Defendant produced his Affidavit on 13 August 2025 – he denied any improper use of the Claimant’s confidential information and stated that, having searched his personal electronic device, he had not found any such information or data on it. The Third Defendant’s Affidavit, dated 14 August 2025, was materially identical to that which suggested that there had been some collaboration in the production of the two documents.[48]The Fourth Defendant produced a differently worded document, dated 19 August 2025. In his Affidavit he made some admissions to accessing the Claimant’s data as follows:
“7.2 In June 2025, I logged on to my personal laptop at the same time as my Hatton's work laptop and I manually inputted into an excel spreadsheet on my laptop around 70 customer details from my Hattons issued work laptop. These included the customer's name, phone number, date of birth if there was one, e-mail address if they had one, and home address. I did this because I was contemplating working for the First Defendant, The Knightsbridge Collection Limited (Knightsbridge) when I had left the employment of Hatton's but I was not thinking clearly or rationally at the time. However after a couple of days, I heard on the grapevine that Hattons had become aware of Knightsbridge. This made me realise that inputting the details onto my personal laptop had been the wrong thing to do and so I asked one of my friends (not a defendant in these proceedings) to wipe my personal laptop. No confidential information of Hattons, including customer information, and any record of such information is contained on that laptop. I also confirm that I did not do anything with the customer information or the excel spreadsheet. I did not provide it to any of the other defendants.”
[49]Whilst this did contain a limited admission of improper accessing of the Claimant’s data, it was not what had been said in the Fourth Defendant’s solicitor’s letter of 2 July 2025 which had been sent in response to the Claimant’s letter before claim. In that letter, he had (via his solicitors) asserted that the access that he had made in June 2025 had only been for reasons related to progressing the Grievance against the Claimant (which he joined on 27 June 2025).[50]He also said that he had given his login details for his account with the Claimant:
“….to some of the other Defendants at a time when I was suspended by Hattons. This was in May 2025 and because I wanted to help them prepare evidence in support of the grievance claim. I do not know what information was accessed by those individuals on those occasions but I certainly do not recall any suggestion of taking Confidential Information for the benefit of Knightsbridge.”
[51]Again, this point had not been made in the earlier account given in the letter from his solicitors dated 2 July 2025. Nor was the admission contained in paragraph 14 of his Affidavit that having been suspended from his employment on 2 June 2025 (for reasons unconnected with the issues raised in these proceedings) he had:
“…..decided I wanted to explore working for Knightsbridge at this point. I therefore spent 5 or 6 days at Knightsbridge, seeing how I got on selling coins. Whilst there, Knightsbridge gave me the ability to download to my mobile phone and app which to the best of my recollection, was called Elite. This app contained individual names and telephone numbers, and I called these numbers to try and sell coins. I do not know how Knightsbridge compiled this list of names, but I assumed that it was all above board, and that Knightsbridge had purchased the customer information and built up that information by attending marketing and sales events such as coin fares (sic). I do not therefore know whether any of the individuals on the list are Hattons’ customers. However if they were, this is not a result of any of my actions.”
[52]The Sixth Defendant’s Affidavit, dated 14 August 2025, contained very little beyond as assertion that he had not retained any confidential information other than a limited number which were said to be “a collation of materials relating to a collective grievance.”[53]In their Affidavits, also dated 14 August 2025, the Seventh and Eighth Defendants followed the same format as the Second and Third Defendants and simply denied any possession or misuse of any confidential information belonging to the Claimant.

Information and Disclosure obtained via the Liquidators of the First Defendant

[54]On 1 August 2025, the Claimant’s solicitors wrote to the Liquidators notifying them of the terms of the Glasson KC Order and Judgment which had been handed down the previous day. The Liquidators replied on the same day indicating that the Eighth Defendant had provided them with what was said to be a “laptop containing company data”.[55]On 5 August 2025, the Liquidators issued a document headed “Financial Information to Creditors and Members of the Knightsbridge Collection”. The document confirmed that they had been instructed by the Eighth Defendant on 22 July 2025. Under the heading “Company History” the Liquidators set out information that had been provided to them by the Eighth Defendant, and which included the following statement:
“3.3 [The Eighth Defendant] had worked at “Hattons”, a well-established coin dealer until October 2022, when he left due to illness. During his term of employment, he had gained valuable experience in buying and selling coins. 3.4 In September 2024, [the Eighth Defendant] was approached by a group of friends to incorporate The Knightsbridge Collection Limited. These friends also worked for “Hattons”, it was the intention for them subsequently to join the Company as shareholders once the Company was established.”
[56]On 12 August 2025, the Liquidators wrote to the Claimant’s solicitors inviting them to send a member of the team to attend their premises to inspect any information that was held on the laptop that had been provided by the Eighth Defendant. On 15 August 2025, the Liquidators wrote to the Claimant’s solicitors stating that they understood from the Eighth Defendant that the Zoho account had been shut down by him “to avoid receipt of further payments into the company bank account. The company does not have access to the system.” This email was sent in response to one from the Claimant’s solicitors asking if the Zoho system remained accessible on the laptop that had been provided by the Eighth Defendant.[57]On 21 August 2025, solicitors acting for the Liquidators wrote to the Claimant’s solicitors confirming that access to the Zoho system had been “locked out following liquidation” but that they still hoped to gain access to the First Defendant’s emails. However by 10 September 2025, the Liquidators had established that Zoho’s position on disclosing the data relevant to the First Defendant’s Zoho account would not be provided without a court order due to the fact of the liquidation.[58]In the light of this apparent impasse, the Claimant’s solicitors themselves wrote to Zoho on 10 October 2025, requesting its assistance in gaining access relating to the First Defendant’s account with that company. At that stage, the request was limited to Zoho providing confirmation as to what data was held by it relating to the First Defendant, in what form it might be potentially disclosed and how much data there was. The letter also stated that unless Zoho were prepared to cooperate, a non-party disclosure order would be sought from the Court.[59]An email was also sent by the Claimant’s solicitors to the Liquidators on the same day asking them whether an application for disclosure by Zoho of its data relating to the First Defendant had been made under section 234 Insolvency Act 1986. The reply from the Liquidators came on 14 October 2025, stating that they had not yet been successful in accessing any documents held by Zoho. After further prompting from the Claimant’s solicitors, an application was made under section 234 by the Liquidators on 28 October 2025, to obtain company property from Zoho.[60]The outcome of that exercise was that on 20 November 2025, the Liquidators disclosed to the Claimant a total of some 4,300 documents which revealed a substantial amount regarding the First Defendant’s operation and the involvement of the Individual Defendants in it. Taking the key documents chronologically, and adding documents and information that the Claimant had obtained in addition to that provided via Zoho, the following timeline of activity by the Defendants emerges:a. On 25 March 2025, the Eighth Defendant had opened a Zoho account on behalf of the First Defendant. On the same day, usernames were added in the names of all of the Individual Defendants with the exception of the Sixth Defendant. Invitations were issued to the Individual Defendants inviting them to join the account and over the following days, each Individual Defendant accepted them, with most of the acceptances recorded as taking place on 11 April 2025. The Sixth Defendant accepted his invitation to become a user of the system somewhat later, on 1 May 2025;b. On 26 March 2025, an invoice was sent by Zoho to the First Defendant using the email address “info@theknightsbridgecollection.co.uk” (“the info@ address”). The invoice was for a total of £3,836.16 for an annual subscription for 6 employees. It seems highly unlikely that, if the Individual Defendants were not intended to be a material part of the First Defendant’s operation, that this amount of money would have been spent by a fledgling business;c. On the same day, the Seventh Defendant used his personal email address to send an email to himself at the First Defendant using the info@ address – the email carries the subject heading “TEST 400”;d. The Seventh Defendant appears to have conducted a similar testing exercise on 4 April 2025 under the subject heading “New message from The Knightsbridge Collectio” (sic). The email also contained his personal mobile phone number – his suggestion in evidence that this might be due to someone attempting to impersonate him, I dismiss as fanciful;e. On 8 April 2025, an email was sent by a web design company, Netinspire, a website development company,to the Second Defendant using his personal email address headed “WooPayments” and describing how these could be accessed via the First Defendant’s website. The Second Defendant forwarded this to the Sixth Defendant on 6 May 2025 using the latter’s First Defendant email address;f. On the same day, the Third Defendant sent an email to the Second, Fourth, Fifth and Seventh Defendants with the subject line “Call summary”. It sets out a script for closing off orders made by customers and is signed off “Alex Jeffery, Senior Account Manager, the Knightsbridge Collection”;g. Shortly thereafter, the Third Defendant sent a further email, this time to the Eighth Defendant with an attachment named “50p script” and which appears to be a document for use by those working on sales for the First Defendant;h. Again on 8 April 2025, the Seventh Defendant emailed the Third Defendant in what appears to have been a test of whether his email signature with the First Defendant was correctly functioning;i. Between 8 and 15 April 2025, the Eighth Defendant had used the Cliq chat system to share a series of documents with “Andy Pickerill”, “Daniel Farmer”, “Alex Jeffrey”, “Nick Harvey” and “Kashif Aziz” including a stock list, product sheet and payment sheet;j. On 10 April 2025, the Eighth Defendant sent an email (using the info@ address) to the Seventh Defendant (using the email address nick@theknightsbridgecollection.co.uk) providing him with his personal login details for the First Defendant’s phone system. Similar emails were sent to the Third, Fourth and Fifth Defendants using their personalised @knightsbridgecollection.co.uk email addresses;k. On the same day, the Second Defendant sent an email to the info@ address which set out the wording of an “Outbound Call Script for [the First Defendant]”. The script contains the words “we spoke last year and I wanted to reconnect with you” which can only be taken as a reference to a conversation which took place when the person making the call on behalf of the First Defendant, had previously been working for the Claimant, thus providing further evidence of an intention to target the Claimant’s customers but via the First Defendant;l. Again on 10 April 2025, an email was sent by a customer (“LH”) to the info@ address raising a concern about an order that she had placed over the phone but for which she had not received a confirmatory email. LH was, I accept, a key customer of the Claimant and is also recorded as a purchaser of coins in the list of sales made by the First Defendant. According to her email of 10 April “Alex” had taken her order over the phone. From this I conclude that the order was taken by the Third Defendant and that he did so using contact details that were contained on the Claimant’s database;m. Also on 10 April 2025, the Eighth Defendant liaised with Zoho with regard to an issue connected with the operation of the Zoho accounts of the Third, Fifth and Seventh Defendants;n. On 14 April 2025 an email was sent from a Zoho address to the First/Eighth Defendants and which recorded that the Seventh Defendant had apparently “created a new channel and has requested [the Eighth Defendant’s] approval for it”. Later the same day, “Taz” which may well be an AI tool associated with Cliq, generated a message for the Seventh Defendant which read as follows:
“Hello Nick Harvey. Your channel #Sales Team has been approved by @Benjamin Bradshaw and is now open for everyone in the organisation to join” o. On 15 April 2025, the Eighth Defendant used the Cliq system to inform the Seventh Defendant that he had shared a document with him on the Zoho platform entitled “Payment Sheet”; p. On 17 April 2025, the Second Defendant forwarded to the info@ address of the First Defendant, an email from Netinspire with the subject line “Branding Doc” to which a PDF was attached; q. Between 24 April and 14 May 2025, the Third and Eighth Defendants exchanged a number of links on the Cliq system relating to various coins that were for sale on different websites; r. On 25 April 2025, as shown on Cliq, a conversation took place between the Third and Seventh Defendants in the course of which “Steven”, the Seventh Defendant who had adopted the pseudonym “Steven Boyle”, asks “Michael Bailey”, the Third Defendant (who I find has also adopted a pseudonym) if there has been a sale and receives the following response: “no, just told him we had a new release and he said he would be interested to hear about it but isn’t free until 4.45 pm kash said he was a good client before” kash said he was a good client before” s. The reference to “before” demonstrates that the discussion was about one of the Claimant’s customers. The Seventh and Third Defendants then exchange a number of messages up to 4 June 2025 relating to various coins that are for sale on a number of different websites; t. Between 28 April and 5 June 2025, the Third and Fifth Defendants shared multiple Cliq messages including references to having called what appear to be the Claimant’s customers; u. On 29 April 2025, Netinspire an invoice to the Second Defendant and to the “info@” address, with the salutation “Hello Andrew”; v. On 30 April 2025, the Sixth Defendant was also added to the phone system, as evidenced by an email for that date which was sent to the info@ address by Liquid 11, the telecommunications company used by the First Defendant; w. On the same day, with both parties using their First Defendant email addresses, the Seventh Defendant sent an email to the Eighth Defendant headed “Details on the Full Silver Sov please”
. This clearly relates to the potential sale or marketing of a silver sovereign coin; x. Again on 30 April 2025, an email was sent by another telecommunications supplier to the info@ address which began “Hi Nick, Andy” and then set out quotes for the supply of 8 phone extensions. “Nick” is clearly a reference to the Seventh Defendant and “Andy” a reference to the Second Defendant; y. Again on 30 April 2025, the Third Defendant (again using the name ‘Michael Bailey’) shared a number of Zoho worksheets. It is not clear to whom these were sent but the Cliq data suggests it may well have been the Fourth Defendant as within the same group of messages there is one to him on 5 June showing that he has shared an “Untitled Spreadsheet” using the Zoho Work Drive; z. On 1 May 2025, using their First Defendant email addresses, the Third Defendant emailed the Sixth Defendant an email with the subject line “data link” and an attached spreadsheet entitled “Full Base 10001-12000.xlsx”. The evidence of Mr Hall relating to this document – and which I accept – was that the numerical references are likely to be to rows in a spreadsheet. The conclusion that I reach on this point is that the email evidences the Third Defendant sharing the Claimant’s database with the Sixth Defendant; aa. On 6 May 2025, using his personal email address (harveynicks22@outlook.com), the Seventh Defendant sent a series of emails to the Sixth Defendant (using the latter’s First Defendant email address). The emails had similar subject headings. The first email was headed “Nick Harvey shared “Full Base 60001-8000” with you” and invited the Sixth Defendant to access the file containing this data. A further 4 similar emails were sent at around the same time, the only differences being that each email gave access to a different part of the database that was on the face of it being shared by the Seventh Defendant. In addition, it would appear that these emails contain subsets of the larger spreadsheet entitled “Full Base 10001-12000.xlsx” that had been sent by the Third Defendant to the Sixth Defendant just a few days earlier; ab. It appears that there may have been some issues with that part of the database that was being sent to the Sixth Defendant in that the same material was sent to him – this time as an attachment with the same name was sent from the Seventh Defendant’s partner’s email later the same day under the subject line “Re: stupid fucking spreadsheet”. Mr Hall’s evidence, which again I accept, is that having analysed the spreadsheet “Full Base 60001-8000” it is apparent that this contains information that is derived from the Claimant’s database. His reasons for this conclusion are that the spreadsheet has a hyperlink attached to each customer that appears in the spreadsheet. By clicking on the hyperlink it is possible to see numbers which represent the Claimant’s unique “Organisation ID” within the Zoho CRM suite as well as the unique number that applies to that customer within the same suite. In his witness statement, Mr Hall also set out a number of further identifiers within the spreadsheet – I will not set them out in full in this judgment but will record that, having considered them and Mr Hall’s evidence as a whole, I accept his conclusion that “the data [contained within the spreadsheet] in unquestionably the Claimant’s data.” ac. On the same day, the Second Defendant forwarded to the Sixth Defendant an email with the subject line “Woo payments” which Netinspire had set up as the payment processor for the First Defendant; ad. On 7 May 2025, the Sixth Defendant emailed the Eighth Defendant forwarding the results of some testing of data that appears to have been provided by Chic Digital from whom the First Defendant appears to have legitimately purchased some customer data. However the contents of the email provide a strong indication that this source was unlikely to produce much, if any, business for the First Defendant. The Sixth Defendant writes as follows:
“Please find results from the test data. Zero connections, some of them don’t even ring out.” ae. On 8 May 2025, the Sixth Defendant, using his First Defendant email address, sent an email to the Eighth Defendant’s personal email address under the subject line “data” and with an attachment named “Ben_Base.xlsx”; af. On 8 May 2025, the Eighth Defendant used Cliq to notify the Sixth Defendant that he had shared a series of documents with him on Zoho including “Orders and Payments” and “Payment Sheet”; ag. On the same day, the Third Defendant (as Michael Bailey) sent a message to the Sixth Defendant referring to two individuals as being “both massive customers” – this can only be a reference to them being customers of the Claimant; ah. On 8-14 May 2025, the Third and Eighth Defendants exchanged information about coins which were apparently available from Chards or the Royal Mint; ai. On 9 May 2025, an email was sent by yet another telecommunications company, 8 x 8 to the Third Defendant at his First Defendant email address headed “Welcome to the Team” and stating that “your team created an 8x8 Work account for you”
. In addition, he was provided with a new phone number to use with that account; aj. On the same day, the Third Defendant, using his First Defendant email address, emailed the Eighth Defendant using the info@ address under the subject heading “signature” under which an email signature format was set out, with space for the First Defendant’s logo and alongside it, the heading “Alex Jeffrey – Senior Account Manager”; ak. About an hour later, the Sixth Defendant also emailed the Eighth Defendant using his First Defendant email address and forwarding an attachment named “test_data_2.xlsx”. The Sixth Defendant signed off the email using the same template as had been used by the Third Defendant about an hour earlier and again, with him having the same title of “Senior Account Manager”. The email read “data complete, I found 1 collector” – this again evidences the fact that data acquired from legitimate sources was never likely to give the First Defendant a fruitful source of sales contacts or details (albeit that at this point, not all of the legitimately acquired data had yet been received by the First Defendant); al. On 11 May 2025, the Sixth Defendant used his personal email address to send to himself at his personalised “@theknightsbridgecollection.co.uk” address, an image of a logo designed for use by the First Defendant. Thereafter, between 20-23 May 2025, he liaised with a graphic design company, Schui Graphics Limited (“Schui”), regarding the production of printed materials for use by the First Defendant; am. On 12 May, using his personal email address, the Second Defendant sent an email to the info@ address (apparently in response to an earlier message that I have not seen) saying “Sure! Here’s the revised sales script without references to investment”. A script was then provided for use in sales calls relating to a “2025 Silver Proof Britannia 6 Coin Set”; an. On the same day, the Seventh Defendant used his First Defendant email address to contact the Eighth Defendant under the heading “Script” and with an attachment named “Lady Britannia – 350th Anniversary Script.docx”. The email has the same signature format as had been used by the Third and Sixth Defendants on 9 May and the Seventh Defendant again gave his position as “Senior Account Manager”. The script began with the words “It’s Nick calling from the Knightsbridge Collection”; ao. On 13 May 2025, the Eighth Defendant sent an email to his/the First Defendant’s accountant – “David” at “Shackletons”. The email stated “please see below details and percentages for shareholders” and gave the names, addresses and dates of birth of all of the Individual Defendants. Each one was to receive a 15.79% shareholding, save for the Fourth Defendant who was to receive only 5.26%. The total allocated between the Defendants adds up to 100%, indicating that the First Defendant was to be owned by them and them alone. The email was signed off by the Eighth Defendant using the title “Director”. The document provides strong evidence of the intentions of the Individual Defendants – they were to become the joint owners of the First Defendant in exactly the way in which the Eighth Defendant had informed the Liquidators and which the latter had recounted as set out at paragraph 55 above; ap. On 15 May 2025, the Seventh Defendant, using his First Defendant email address invited the Third Defendant, also at his First Defendant email address to attend a meeting at which the remaining Individual Defendants were also identified as participants; aq. On the same day, the Second Defendant used his personal email address to contact the info@ email address with a form of words to be used to establish a business account with the Royal Mint. This would enable the First Defendant to more easily purchase coins which it could then sell on to customers; ar. On 16 May 2025, the Eighth Defendant, using the info@ email address emailed the Sixth and Seventh Defendants at their First Defendant email addresses under the subject heading “due in so far next week”. The email stated that “whatever you do Monday will be paid out Thursday I will keep you posted”. There was then a list of payments totalling some £19,279.43 which were due to arrive over the following 5 days. The only way to read this email is that the Eighth Defendant was notifying the Sixth and Seventh Defendants that they would be paid some proportion of that total sum and that this must presumably be referable to sales that they had achieved working for the First Defendant; as. On the same day, a Hospitality and Events Sales Executive from Stoke City Football Club, sent an email to the info@ address in which he said:
“Hi Andy Thank you for taking my call this morning. Due to your interest in taking an executive box for the forthcoming season, it is my pleasure to extend an invitation to an exclusive behind the scenes visit to our Clayton Wood training ground.” at. The reference to “Andy” is one to the Second Defendant, as he accepted in his evidence under cross-examination; au. A further email was also sent on 16 May by the Eighth Defendant using to the info@ email address to the Seventh Defendant’s personal email address, forwarding a quotation that had been received from Schui, for the production of business card and letterheads; av. On 19 May 2025, using his First Defendant email address, the Sixth Defendant emailed the other Individual Defendants at their First Defendant email addresses with the following comment: “Please find attached all orders that have been delivered as of today. You can use this to check your own clients and check on their deliveries.”
The document clearly indicates that all of the Defendants to whom the email was sent, were involved in effecting sales to their “own clients” on behalf of the First Defendant; aw. A spreadsheet of delivered items was attached to the email and it is clear that, in sending this document to each of the Defendants, the Sixth Defendant was proceeding on the basis that all of the Individual Defendants had “their own clients” and that they could each check on the delivery status of items sold to those clients; ax. The following day, the Sixth Defendant sent a similar email to the Individual Defendants headed “DELIVERIES” with an attachment named “ManifestedOrdersReport”. Again, the inference is apparent – this must be a spreadsheet setting out orders made through the First Defendant and in which the Individual Defendants have some interest; ay. Later that day, the Sixth Defendant sent a further email to the Fourth Defendant with an attachment named “NICKS_BASE.ods”. He also notified the Fourth Defendant on the Cliq messaging system that he had done so; az. On 21 May 2025, the Sixth Defendant sent an email to the Eighth Defendant using the info@address asking whether bullion coins set out in an attached spreadsheet should be hidden on the First Defendant’s website and raising the question of whether “we should remove all pricing for now and then review in a month or so when everything is running smoother?”. The fact that the email begins with the words “Mr Pickerill” indicates that although the document on the face of it was addressed to the Eighth Defendant, it was actually the Second Defendant that was using this address, at least at this point in time; ba. On 22 May 2025, the Eighth Defendant emailed the Sixth Defendant asking him to fill out a risk assessment form for the office unit being used by the First Defendant; bb. On the same day, the Third Defendant sent a Cliq message to the Sixth Defendant with a link to a Zoho worksheet and the message “that’s the deliveries updated other than 2, both my old customers from hattons”. There is then further discussion about updating the order and payments spreadsheet as well as the delivery sheet; bc. On 23 May 2025, the Sixth Defendant emailed each of the Individual Defendants using their First Defendant email addresses and attaching individual spreadsheets contained data relating to each recipient. The email said as follows:
“Hi Guys Please find attached your data to work from. For the time being please don’t work on any other data than what is in your spreadsheet. You can save data directly to your own computer to keep.” bd. The Claimant accepts that the attachments to the 23 May 2025 email are likely to be spreadsheets containing data legitimately purchased from Chic Digital. However, Mr Mellinger has confirmed in his Second Witness Statement, that this data contains information relating to around 7000 individuals, of whom only 33 are/were customers of the Claimant; be. The documents disclosed by the Liquidators included a spreadsheet entitled “Sales Orders” and which appears on the face of it to be a list of all sales made by the First Defendant during the limited period in which it actively sought to trade. It records 176 sales of which 172 match the names of customers of the Claimant. The remaining 4 sales relate to customers who are family members of the Second, Third and Eighth Defendants. Given the almost complete match between the First Defendant’s sales and the Claimant’s customers, it is implausible to suggest that these sales were made using information legitimately obtained through third party sources; bf. In addition, the majority of sales set out in the spreadsheet has the name of one of the Individual Defendants attached to it (under the column heading “Coin ordered”). The obvious inference is that the name is that of the person who is responsible for the sale of the coin to the customer listed on the spreadsheet. I again reject as implausible, the explanations put forward by the Defendants that these were purchases that they had made and that were then to be resold by the First Defendant; bg. On 27 May 2025, the Second Defendant received at his personal email address, an invoice from Netinspire for its work on the First Defendant’s website. The Second Defendant then forwarded this to the info@ email address, presumably to get it to the Eighth Defendant; bh. On 28 May 2025, the Sixth Defendant emailed the Eighth Defendant setting out his views on the compliment slips that had been designed by Schui; bi. On the same day, the same two Defendants appear to have had a lengthy discussion on the Cliq messaging system which included the following: - Sixth Defendant: “are you planning on doing constructive dismissal after the next payday?” - Eighth Defendant: “I don’t know yet mate need to speak to kavi first” bj. The reference to constructive dismissal of course makes no sense if it was in fact the Eighth Defendant who made the comment above as he had left his employment with the Claimant as long ago as 4 October 2022. From this, I conclude that either one of the other Defendants who was still employed by the Claimant as at that date, had logged in as or at the same time as the Eighth Defendant. The reference to constructive dismissal does not make any sense unless it refers to one of those who had not yet left their employment with the Claimant as at 28 May 2025. The evidence strongly suggests that the Second Defendant was the person with whom the Sixth Defendant was in fact communicating as the timing fits only with the point at which the Second Defendant was still employed by the Claimant and had not yet resigned; bk. There is support for that finding set out later in the conversation which records as follows: - Eighth Defendant: “sound mate whose in office?” - Sixth Defendant: "thought you were”; - Eighth Defendant: “its ben but I think pick is on mine aswell lol” bl. The Sixth Defendant then addresses a question directly to “Pick” but using the Eighth Defendant’s name as the recipient. Having been asked the direct question, “Pick” – the Second Defendant – provides a response. It is therefore clear that as at 28 May 2025, the Second Defendant was using the Eighth Defendant’s credentials on the Cliq system and was still considering the “constructive dismissal” route. He then resigned with immediate effect on 27 June 2025; bm. There is further discussion on Cliq that day between the Sixth and Third Defendants (with the Third Defendant again using the Eighth Defendant’s credentials) in which the following appears: - Sixth Defendant: “there is deffo customers to be had from this big data though, I’m just going to stick with it was well as the bought data, less sales but it would be our bread and butter” - Third Defendant “im only pitching low end as im only running the 8th buyers – no point in hammering big customers when we’re not desperate for sales now” bn. The references to “big data” and “big customers” only make sense as being references to information and customers of the Claimant; bo. That however is not the end of the conversation that morning as the two continue as follows: Third Defendant: “it’s amazing how much better I feel everyday knowing I’m out of [Hattons] honestly, I’m like a different person Sixth Defendant: “yeh massively, although I would like to talk about getting paid soon”
Third Defendant: "yeah 100% mate – in order to do that though I think we all need to go down the constructive dismissal route but I need the money for next month so it’s a catch 22” Sixth Defendant: “its a tricky one” Third Defendant: “sure is – we need a serious talk with everyone to see if they’d be happy to do the constructive dismissal route” bp. On 29 May 2025, the Sixth Defendant sent a further email to the other Individual Defendants updating them on deliveries with a spreadsheet entitled “Deliveries_30.05.25”; bq. On 29-30 May 2025, the Third and Sixth Defendants used the Cliq messaging service to exchange further web addresses relating to particular coins; br. On 30 May 2025, an email was sent to the info@ email address from coin and bullion dealers, Chards. The email began with the words “Dear Alex and the Knightsbridge Collection. Thank you for taking the time to speak with me.” There had clearly therefore been a conversation between Chards and the Third Defendant about the potential for the First Defendant opening an account with Chards; bs. On the same day, the Third Defendant sent to the Eighth Defendant what appears to be a draft of an email to be sent to a customer, Mr Martin as a follow up to a conversation that had apparently taken place with him. Mr Martin is clearly a customer of the Claimant and known to be so by the Third Defendant as he states that that person “bought up to the £5 at hattons.”; bt. On 3 June 2025, the Third Defendant, sent a further message saying “Can you call to confirm delivery. He knows me from Hattons” - from which it can readily be inferred that the Third Defendant had made a sale to another of the Claimant’s customers and knew that he had done so; bu. On 3-4 June 2025, the Fifth Defendant shared via Cliq messaging, multiple files with the Fourth Defendant which appear to relate to the First Defendant’s operations; bv. On 5 June 2025, the Third Defendant sent an email to the Fifth Defendant with what appears to be a sales script for a coin connected by the Royal Mint as a tribute to Queen Elizabeth II; bw. On the same day, the Second Defendant emailed the info@ email address setting out a script for use in connection with an “Exciting Opportunity: Commemorative Queen Elizbeth II and King Charles III Coin”; bx. Again, on 5 June 2025, multiple documents from the First Defendant’s Zoho system were shared with the Fourth Defendant as recorded on the Cliq messaging system. It appears that, on or before this date, the Fourth Defendant had adopted the pseudonym “Chris Moore” when using the Cliq messaging system. “Chris Moore” is then shown on the list of sales/payments effected through the First Defendant, as the originator of a significant number of transactions; by. On 16 June 2025, Netinspire sent a “product sheet” to the info@ email address which began “Dear Andy, Please find below the correct product sheet to use”. “Andy” can only be a reference again to the Second Defendant; bz. From around this point, the trail in terms of documents indicative of trading by the First Defendant and integration into the business by the Individual Defendants, begins to go cold. It was of course on 20 June 2025, the solicitors for the Claimant first wrote to all of the Defendants seeking undertakings based on the alleged misuse of the Claimant’s confidential information; ca. On 25 June, Netinspire, having received some content from the Eighth Defendant two weeks earlier relating to the proposed email campaign, wrote apologising for the lack of contact and stating that the email design had been prepared and that “Andy has completed the CRM integration with Zoho too.” Although the email is sent to the Eighth Defendant’s email address, it begins “Hey Andy” which in context must be a reference to the Second Defendant and provides a further indication of the extent of his involvement with the setting up of the First Defendant’s website as well the work that he appears to have done relating to “CRM integration”; cb. On 20 June 2025, the First Defendant is recorded as having made its last sale – this was the same day that letters before action had been sent to the Defendants and as a result of which they would have been well aware that the Claimant was alleging misuse of its database; cc. On 3 July 2025, a further email was sent by Netinspire to the Eighth Defendant’s email address, again with the salutation “Hey Andy” and providing details of costing for the First Defendant’s website set up; cd. On 5 August 2025, the Eighth Defendant had provided the Liquidators with information for the purpose of completing the “Company History” section of a document entitled “Financial Information to Creditors and Members of Knightsbridge Collection Limited Pursuant to Statement of Insolvency Practice 6”, as set out in paragraph 55 above. I treat the information as provided as being one of the very rare occasions on which any of the Defendants appears to have given a truthful account in relation to a material issue in the case; ce. On 11 August 2025, Zoho emailed the Eighth Defendant to ask for the reason why the First Defendant’s Zoho account was being cancelled, to which the Eighth Defendant replied: “Nothing you have done, simply the business is closing and I just need to confirm everything is shut down and all data has been deleted as per the GDPR regulations.” cf. On the same day, Zoho had written to the Eighth Defendant stating that they would get back to him in relation to his request to delete all of its relating to the First Defendant. A second communication from Zoho of the same date responded to a request by the Eighth Defendant to change the First Defendant’s account password and provided a link for this to be effected by the Eighth Defendant; cg. On 12 August 2025, the Eighth Defendant wrote to Zoho as follows: “Has this been shut down and Deleted now? I need this done as soon as possible as the company is now in liquidation.” ch. Whilst there may have been good reason to close down the First Defendant’s Zoho account given that it had ceased trading, there seems to be no such reason why pre-existing information on its account needed to be deleted and with such urgency - the obvious inference is that the Eighth Defendant was seeking to put out of reach, information which he knew was relevant to the litigation that he was facing from the Claimant and which was highly damaging from his perspective and that of the other Defendants; ci. On 14 August 2025, Zoho wrote to the Eighth Defendant stating that they were initiating the cancellation and data deletion process. An internal Zoho communication sent the following day confirms the closure of the account and requests members of the Zoho team to proceed with deletion of all data associated with it.[61]In relation to the Cliq data referred to above, it is right to point out that there are a number of names that appear in that data which do not on the face of it, have any connections with the First Defendant or any of the Individual Defendants. The explanation advanced by the Claimant is that at some point, most of the Defendants became concerned that their activities were being picked up on by the Claimant and therefore sought in some way to cover their tracks by using aliases. I have already referred to a number of these in the lengthy summary of the evidence at paragraph 60. There is ample support for that explanation when one examines the conversations that took place from which one can see the Individual Defendants identified either by the context of the conversations or by the use of their first names or nicknames within the chat. Therefore, whilst the username may have been altered through the adoption of an alias, examination of the actual conversations I conclude does indicate that each of the Individual Defendants, with the exception of the Eighth Defendant, did indeed adopt different usernames within the Cliq chat system. The explanation for this, I infer, was a ham-fisted attempt by the Individual Defendants to somehow reduce the chances of them being associated with the material contained on the messages.[62]Perhaps the most damning document from the Defendants’ perspective, is the record of orders and payments contained within the Confidential Bundle prepared for this trial. The document records a total of 176 unique customers of which 172 are the names of customers whose details appear in the Claimants confidential documents and to which I have referred at paragraph 61.eee. above. It is beyond any reasonable bounds of probability that these customers of the First Defendant came from anywhere other than the Claimant’s data. The remaining 4 are in some way connected to the Individual Defendants as relatives and therefore whilst the First Defendant may have spent money on acquiring data legitimately from other sources, namely Chic Digital, all of its sales other than the handful that came from relatives of the Individual Defendants, have been taken from confidential data which can only have been copied by one of more of those Defendants. Furthermore, the orders and payments schedule reports for the period after 24 April 2025, the names of particular Individual Defendants under the heading “coin ordered”. With the exception of the Fourth Defendant whose name does not appear, the first names of all of the Individual Defendants are captured with a “Yes” next to them and under this column heading and they do so in connection with customer names of individuals who were customers of the Claimant. It is also telling that the last sale that is recorded in the First Defendant’s records was on 20 June 2025 which was the same day that the Defendant’s received the first letters before claim from the Claimant’s solicitors on 20 June 2025. The inevitable inference that is to be drawn from this is that the Defendants took data from the Claimant and used it for the purpose of effecting sales to the Claimant’s customers and only ceased doing so when they realised that the game was up. The position of each Individual Defendant will be considered further below.[63]Following receipt of the material obtained through Zoho, the Claimant’s solicitors wrote to each of the Individual Defendants on 4 December 2025, stating that this disclosure demonstrated that their prior suggestions that they had had no involvement with the First Defendant and/or had not used the Claimant’s confidential information were “demonstrably false”. The letters concluded with the following words:
“As detailed at the outset of this letter, the Claimant is hereby granting you this one and only opportunity to admit liability of this claim with relief to be determined and assessed by the Court.”
[64]This point was repeated in further correspondence by email dated 9 December 2025 sent to all of the Individual Defendants bar the Fourth Defendant in which reference was made to further disclosure which the Claimant’s solicitors suggested further undermined the defences which had been put forward in response to the Claimant’s claims. Suffice it to say for present purposes, that none of the Second-Eighth Defendants took the Claimant up on the opportunities that had been offered to them.

The Claimant’s pleaded case and the responses of the Individual Defendants to it

[65]The Claimant filed its Particulars of Claim on 11 September 2025. Whilst it did of course have the benefit of the Glasson KC Order and had seen the response of the Defendants set out in the correspondence from them and their solicitors as well as their affidavits as set out above, it did not have the information that was later obtained as a result of the section 236 Order that the Liquidators had obtained against Zoho. Nevertheless, the Claim pleaded in some detail the Claimant’s case that the Defendants had entered into a “Common Design” to:a. Establish and launch the First Defendant’s business;b. Appropriate the Claimant’s confidential information in order to use it to further the First Defendant’s business;c. Divert customers from the Claimant’s business to that of the First Defendant; andd. Achieve this by unlawful means, in particular by the Individual Defendants breaching the terms of their contracts of employment with the Claimant as well as breaching other contractual and/or equitable and/or Database Rights that the Claimant had.[66]Given the absence of any disclosure, the particularisation of the Claimant’s case was necessarily limited but reference was made to the statement that had been provided by the Eighth Defendant to the Liquidators in which he had said that he had been approached by “a group of friends” who had been employed by the Claimant and that this had led to the First Defendant being incorporated. In addition, the Claimant alleged that a number of the Individual Defendants had accessed the Claimant’s Zoho analytics database outside office hours or during periods of sick absence. It was also pleaded that the Second – Seventh Defendants had on various dates been seen at the First Defendant’s premises and that their purpose in doing so was in pursuit of the “Common Design” that had been alleged. Complaint was also made to the effect that there was evidence that a number of the Claimant’s customers had received sales calls from the First Defendant which had been unsolicited and which appeared to show that the individuals making such calls had some prior knowledge of those customers’ buying habits. Attached to the Particulars of Claim were a series of Annexes setting out, inter alia:a. Dates of alleged unauthorised Zoho access by the Seventh Defendant;b. Dates on which it was alleged that the Fourth Defendant’s Zoho login details had been used at the Second Defendant or Seventh Defendants’ home addresses or at the First Defendant’s business address;c. A summary of customer concerns giving details as to the particular issue that each customer had raised.[67]The Defences of all of the Defendants were filed on 8 October 2025. Given that the First Defendant was by this time in liquidation, there was clearly not much that could be said in the pleading filed by the Liquidators. As to the Individual Defendants, the contents of their Defences can be summarised as follows:a. Second Defendant: - He alleged that he had been subject to “bullying and intimidation” in the course of his employment with the Claimant as well as to other repudiatory breaches of contract by it; - He suggested that the Claimant did not have “clean hands” in the way in which it had conducted the litigation and therefore was not entitled to equitable relief; - He said that he had not copied, disclosed, accessed or misused any of the Claimant’s confidential information; - He denied that he had been part of any “Common Design” to act unlawfully towards the Claimant; - He admitted that Netinspire had published a testimonial which was said to have come from “Andy from the Knightsbridge Collection” but that this was an error and had been done without his involvement or knowledge. He said that all he had done with regard to Netinspire was to “recommend [them] to a former colleague”; - He denied doing any work for or assisting or deriving any financial benefit from the First Defendant; - He said that the Eighth Defendant had requested that he assist with two purchases on behalf of “an acquaintance [who] had reached the individual purchase limit for coin acquisitions”; - He denied accessing the Claimant’s Zoho system and he denied that he had used the credentials of anyone else to access its information; - He accepted that he had been at the First Defendant’s premises on various dates but that this was not for business purposes but was “wholly innocent and connected with social contact with colleagues involved in the same collective grievance process”; - He denied having made any sales approaches or contact with the Claimant’s customers and that he had “no knowledge of, nor involvement in, the business development activities of [the First Defendant]….and bears no responsibility for any such conduct.”; - He claimed that he had “at all times, acted in good faith” or “only for legitimate grievance-related purposes.”; - He suggested, somewhat optimistically, that the Claimant’s Particulars of Claim were “speculative and legally unsustainable” and that they “should be dismissed or struck out.”b. Third Defendant: His Defence was must shorter than that of the Second Defendant and consisted primarily of bare denials of the Claimant’s claims and the particular allegations on which those claims were based;c. Fourth Defendant: - He also advanced a claim based on alleged repudiatory breach of his employment contract by the Claimant; - He denied any involvement in the establishment of the First Defendant or any financial benefit from its “creation or early operations.”; - He claimed that he had not undertaken any paid work for the First Defendant and had not received “any remuneration or benefit” from it; - He asserted that a payment of £408.95 which had been received by his wife had not been as a result of misusing the Claimant’s data but that this was “private reimbursement for a legitimate purchase” made on behalf of the Eighth Defendant; - He said that he had on occasions, shared his (Claimant) login details with a colleague whilst he was still employed by the Claimant but that this was only for the purpose of reviewing client allocations as part of the collective grievance that had been brought against the Claimant; - He denied any knowledge of his login details being used from an IP address associated with the Seventh Defendant; - He accepted that he had attended the First Defendant’s premises on 2 June 2025 only but said that this had been only for the purpose of “meeting colleagues discussing a collective grievance”; - He denied making any calls to the Claimant’s customers or being involved in any communications with them; - Again, he claimed that he had at all times acted in good faith and for legitimate purposes only;d. Sixth Defendant: - He alleged that the Claimant’s case against him was misleading, accusatory and defamatory in nature; - He denied having planned, encouraged or participated in the establishment or operation of the First Defendant; - He said that, whilst his insight and knowledge were “minimal” his understanding was that the First Defendant did not and was not emulating the business of the Claimant. He suggested that the First Defendant had “an entirely different target market”; - He suggested that the photographs that had been taken off him and which showed his presence at the First Defendants premises amounted to “harassment”. He said that his presence at those premises was not for the purpose of competing with the Claimant; - Beyond that, his Defence consisted of a series of denials of any wrongdoing;e. Seventh Defendant: - He also made allegations of bullying, harassment and repudiatory breach of contract against the Claimant; - He denied that he had ever been a director, shareholder, officer, employee or agent of the First Defendant or had ever received any financial benefit from it; - He denied any copying, disclosure or misuse of any confidential information belonging to the Claimant; - He claimed that he did not “establish, assist in establishing, or contribute to the launch or development of [the First Defendant] as a business” – and later in the pleading “whether before, during or after his employment with [the Claimant]”; - He denied doing any paid work for the First Defendant or receiving any payment or benefit from it; - He denied any knowledge of any access to the Claimant’s database which was associated with the use of an IP address linked to his home; - He also admitted that he had attended the First Defendant’s premises but again claimed that the purpose of this was limited to meeting with colleagues to discuss the work-related grievance and client misallocation within the Claimant. He “denied that his attendance had any commercial or competitive purpose.” - He admitted his attendance at those premises on 13 June 2025 but said that on that occasion he had only spoken briefly to the Sixth Defendant and only about the collective grievance against the Claimant; - He either denied or claimed no knowledge of attending the First Defendant’s premises (at least for any “work related purposes”) on 16, 17 or 19 June 2025; - He denied approaching any of the Claimant’s customers or using any of its confidential information; - He claimed that, at all times, his actions had been “transparent and not motivated by any intention to deceive, conceal or damage [the Claimant]”;f. Eighth Defendant: Like the Third Defendant, the Eighth Defendant filed only a short-form defence in which he denied any wrong-doing or misuse of the Claimant’s confidential information. He also denied that the First Defendant had been “established or operated unlawfully”.

Witness statements and Skeleton Arguments filed by the Defendants

[68]Broadly the same position was taken in the witness statements and Skeleton Arguments of the Individual Defendants prepared for the purpose of this trial. In particular, and dealing first with the witness statements:a. The Second Defendant said that he had “provided limited, informal assistance to [the Eighth Defendant] as a friend” and that this was “unpaid, ad hoc and non-commercial in nature”. Any involvement with the First Defendant’s website or its own CRM was “confined to general technical discussion” and “did not extend beyond general technical explanation and did not involve [the Claimant’s] data.”;b. The Third Defendant said that he had made his login credentials available “for the limited purpose of enabling others involved in the grievance to review materials that they believed to be relevant to those concerns.” He also claimed to have provided only “limited, informal assistance” to the Eighth Defendant and that this was ad hoc and consisted of “minor practical tasks, such as helping with postage, stock and other routine administrative matters”. He denied carrying out any sales activities using the Claimant’s data and said that any payments received by him related to purchases made on behalf of someone else due to purchasing limits;c. The Fourth Defendant also said that he had given his Claimant login credentials to some of the other Defendants “because I wanted to help them prepare evidence in support of the grievance.” He also said that he had also used his Claimant-issued laptop whilst at the First Defendant’s premises for the purpose on checking “whether my customer accounts had already been moved over to the Sales Manager’s son” and that this was done at a point at which he was contemplating joining the collective grievance that others had already begun;d. The Sixth Defendant also suggested that he had simply offered “informal assistance” to the Eighth Defendant “as a friend” and that that assistance was limited to things such as “minor practical tasks, such as helping with postage, stock and other routine administrative matters.” He denied making any sales calls or soliciting of customers using the Claimant’s data. The Sixth Defendant also provided a further witness statement which expanded to some extent on the points that he had already made and also recorded that “due to health and personal circumstances” he would not be attending the trial. He maintained that he had “acted honestly and in good faith throughout”;e. The Seventh Defendant’s witness statement was in very similar terms to that of the Sixth Defendant, asserting that he had gone no further than to give limited assistance to the Eighth Defendant on an informal basis and “as a friend”;f. The Eighth Defendant admitted taking “limited, experimental and tentative” activity aimed at setting up a coin business of his own but he denied that there had been any “established trading operation” or “sustained commercial activity” during the period relied on by the Claimant for the purpose of these proceedings. He accepted that he had allowed premises that he had rented, to be used by his former colleagues “as a location to hold collective grievance meetings relating to workplace concerns” deriving from their employment or former employment with the Claimant. He claimed that data that he had used in the course of the “exploratory phase of considering whether a future business might be viable” was purchased legitimately by him that was “available on the open market”. He accepted that other Defendants had provided “minor, practical assistance” once he had decided to explore the viability of a new coin business.[69]I will not go through the Skeleton Arguments that the Defendants submitted for the purposes of the trial – suffice it to say that they did at least have the merit of consistency in that in each case, the Individual Defendants sought to maintain the position set out in the pleadings and witness statements to the effect that they had done nothing wrong, had not used the Claimant’s data and had not entered into any agreement or common design to divert the Claimant’s customers to the First Defendant.

Evidence given in cross-examination

[70]When cross-examined by Mr Northall regarding the wealth of evidence that contradicted the accounts that they had given prior to the trial, the Defendants – at least those that attended and gave evidence – stuck to their lines and did not accept any or any material involvement with the First Defendant. To summarise their responses:a. The Second Defendant maintained that: - He had not done any work for the First Defendant and had no knowledge or involvement in its business activity; - He had done no more than offer “informal help” to the Eighth Defendant in helping to set up the business, particularly with regard to the website in relation to which he had acted as a point of contact with Netinspire. This had come about only because he had “bumped into [the Eighth Defendant] in a pub”; - He did not know that the Eighth Defendant had instructed Zoho to delete all the First Defendant’s account data; - He had no recollection of accepting the invitation to sign up as part of the First Defendant’s Zoho account – he did however accept that the documents showed that an invitation had been sent to him and that he had accepted it; - Although the Eighth Defendant had offered him a role with the First Defendant, he had turned it down; - He had never used the First Defendant email address that had his name attached to it – andy@knightsbridgecollection.co.uk and have never seen the data that had been sent to that address by the Sixth Defendant; - He had not disclosed the email sent to his personal email address by Netinspire on 17 April 2025 as he did not think that it was relevant; - Whilst he had prepared two sales scripts that had gone from his personal email address to the info@ address, he had done this using ChatGPT and it had only taken him a few minutes; - Similarly, whilst he accepted that an email entitled “Request to Establish a Business Account” and dated 15 May 2025, had been sent from his personal email address to the info@ address, again this was a draft that had been prepared using ChatGPT; - He maintained the position that he had simply been “the point of contact” with regard to the setting up of the First Defendant’s website through Netinspire, he would simply forward these on to the Eighth Defendant; - He maintained that the email message from Stoke City Football Club regarding the purchase of an executive box by the First Defendant, was again, simply because he was the point of contact as he knew someone at the club.b. The Third Defendant gave evidence that: - Also denied any knowledge of the Eighth Defendant seeking to delete information held on the First Defendant’s Zoho account; - He denied that the Eighth Defendant had ever offered him a job – but accepted that he had done some “ad hoc work”; - He said that he had no recollection of receiving an email invitation to join the First Defendant’s Zoho account and suggested that the acceptance of that invitation may have been done by somebody else – perhaps the Eighth Defendant, who may also have set up an email address for him at the First Defendant; - When it was pointed out to him that his Claimant log-in details had been used in March 2025 on 103 occasions from an IP address that was unrelated to the Claimant, he continued to assert that this had only been for the purpose of acquiring grievance-related evidence but accepted that it had been a mistake to give his login details to others; - When shown an email dated 1 May 2025 sent from what appeared to be his email address at the First Defendant, he denied having sent it. The significance of the email is that it had an excel spreadsheet attached to it entitled “Full Base 10001-12000.xlsx” as to which the Claimant’s evidence was that this contained its confidential customer data; - He accepted that he had prepared a sales script entitled “50p_script.docx” and sent it to the Eighth Defendant on 8 April 2025 but said that this was simply doing a friend a favour, albeit that he knew that it would be used for sales purposes; - He also accepted that an email from the customer “LH” who had put in an order through the First Defendant, properly recorded that he (the Third Defendant) had spoken to her on the phone. He also accepted that LH was an important customer of the Claimant and that he had been her account manager. This was one of the rare occasions on which any of the Defendants appeared ready to make any admissions as to their involvement in making sales to the Claimant’s customers but on behalf of the First Defendant; - He also accepted that an email from coin wholesalers, Chard Wholesale, confirmed that inquiries were made of them in order to purchase coins for the First Defendant – he suggested however that this was not to be done in competition with the Claimant; - He claimed that the document that had been prepared by the Eighth Defendant and which set out potential shareholdings in the First Defendant to be held by the Individual Defendants, had been prepared without his knowledge. When asked why the Eighth Defendant may have done this, he said that he had no answer; - When he was shown the spreadsheet containing a list of sales apparently made through the First Defendant, he accepted that where his name appeared, he had bought the coin in question. He continued however to assert that this was done simply “to help a friend” – the Eighth Defendant;c. The Fourth Defendant: - Accepted that he had copied some of the Claimant’s data on to his own laptop at a point at which he said he was “heavily medicated and not in a good place.” He claimed that this was limited to about 70 names but that these had been deleted along with the entire contents of his laptop; - Confirmed that he had given his login details to others – but he could not remember who – and said that this was solely for the purpose of the grievance process. He said he had simply written the login details on a post-it note and left this at a grievance meeting that he had attended; - Denied having accepted an invitation to join the Zoho system operated by the First Defendant and suggested that this had been done by someone else and without his knowledge; - Denied having used any email address associated with the First Defendant or using the Zoho system; - When shown an email dated 20 May 2025 from the Sixth Defendant which had been sent to an account at the First Defendant which bore his name and which appeared to have data/spreadsheets attached to it, he denied either requesting or receiving the email; - He gave a similar response on being shown the email dated 23 May 2025 from the Sixth Defendant which on the face of it had been sent to each of the Individual Defendants with data/spreadsheets attached to it. He said he had never seen the document before; - When asked about the proposal from the Eighth Defendant relating to the proposed shareholding of the Individual Defendants in the First Defendant, he said that he knew nothing about this and know of no reason why anyone would, on the face of it, gift such a shareholding to him;d. The Seventh Defendant: - Continued to assert that he had done no work for the First Defendant; - Had no explanation for the email of 8 April 2025 from an account with the First Defendant which bore his name and which was entitled “Email signature” or for a second email of the same date with the word “test” in it; - Denied any responsibility for the email from Zoho to the First Defendant/Eighth Defendants dated 14 April 2025 and which suggested on the face of it that he had requested the Eight Defendant’s approval for a new Zoho channel; - Did not recall being sent or accepting the invitation to use the First Defendant’s Zoho system.[71]In the ordinary course of giving judgment, it is not routinely necessary or appropriate to set out in the detail that I have, the case advanced by a Defendant in their pleadings, Skeleton Arguments, witness statements and live evidence. I have done so in this case in order to demonstrate the extent to which the Individual Defendants have stuck doggedly to their claims of innocence in the face of the overwhelming evidence to the contrary and which I have again set out at some length in paragraph 60 above. In that paragraph, I have set out dozens of examples of where the evidence in the case has demonstrated that the positions and defences adopted by the Defendants are simply untrue. Equally, I have no doubt that, even with a list the length of that set out in paragraph 60, I have not captured each occasion on which the evidence at trial contradicts the arguments put forward by the Defendants. I shall return to this point in my conclusions set out below. Legal Framework (1). Breach of confidence[72]The Claimant relies on the well-known decision of Goulding J in Faccenda Chicken Ltd v Fowler [1984] ICR 589 in which two types of information were identified as being potentially protectable by law:a. Trade secrets. Such information would be protected by an implied duty of confidentiality, even after termination of employment. The categories of trade secrets are not closed and it is necessary to consider all the circumstances of the case when deciding if information amounts to a trade secret.b. Mere confidential information. Employees must treat such information as confidential during employment (either because they are told that it is confidential or, if not, because it is obvious that it is confidential). However, the implied duty of confidentiality will not subsist beyond termination of employment in respect of this information.[73]Within the potential category of “trade secrets” can, in an appropriate case, be “the names of customers and the good which they buy” – see Staughton LJ in Lansing Linde v Kerr [1991] ICR 428, at 437F. In the preceding paragraph of his Judgment, he also said this in setting out the distinction between the two categories of information that had been identified by Goulding J in the Faccendacase:
“It appears to me that the problem is one of definition: what are trade secrets, and how do they differ (if at all) from confidential information? Mr. Poulton suggested that a trade secret is information which, if disclosed to a competitor, would be liable to cause real (or significant) harm to the owner of the secret. I would add first, that it must be information used in a trade or business, and secondly that the owner must limit the dissemination of it or at least not encourage or permit widespread publication. That is my preferred view of the meaning of trade secret in this context.” secrets, and how do they differ (if at all) from confidential information? Mr. Poulton suggested that a trade secret is information which, if disclosed to a competitor, would be liable to cause real (or significant) harm to the trade or business, and secondly that the owner must limit the dissemination That is my preferred view of the meaning of trade secret in this context.”

That is my preferred view of the meaning of trade secret in this

[74]Further guidance on this question was provided by the Court of Appeal in the Faccendacase – [1987] 1 Ch 117 with Neil LJ (at 137B) saying as follows “(5) In order to determine whether any particular item of information falls within the implied term so as to prevent its use or disclosure by an employee after his employment has ceased, it is necessary to consider all the circumstances of the case. We are satisfied that the following matters are among those to which attention must be paid:(a) The nature of the employment. Thus employment in a capacity where ‘confidential’ material is habitually handled may impose a high obligation of confidentiality because the employee can be expected to realise its sensitive nature to a greater extent than if he were employed in a capacity where such material reaches him only occasionally or incidentally.(b) The nature of the information itself. In our judgment the information will only be protected if it can properly be classed as a trade secret or as material which, while not properly to be described as a trade secret, is in all the circumstances of such a highly confidential nature as to require the same protection as a trade secret eo nomine. The restrictive covenant cases demonstrate that a covenant will not be upheld on the basis of the status of the information which might be disclosed by the former employee if he is not restrained, unless it can be regarded as a trade secret or the equivalent of a trade secret: see, for example, Herbert Morris Ltd v Saxelby [1916] 1 AC 688, 710 per Lord Parker of Waddington and Littlewoods Organisation Ltd v Harris [1977] 1 WLR 1472, 1484 per Megaw L.J. We must therefore express our respectful disagreement with the passage in Goulding J's judgment at [1984] ICR 589, 599E, where he suggested that an employer can protect the use of information in his second category, even though it does not include either a trade secret or its equivalent, by means of a restrictive covenant. As Lord Parker of Waddington made clear in Herbert Morris Ltd v Saxelby [1916] 1 AC 688, 709, in a passage to which Mr. Dehn drew our attention, a restrictive covenant will not be enforced unless the protection sought is reasonably necessary to protect a trade secret or to prevent some personal influence over customers being abused in order to entice them away. In our view the circumstances in which a restrictive covenant would be appropriate and could be successfully invoked emerge very clearly from the words used by Cross J in Printers & Finishers Ltd v Holloway [1965] 1 WLR 1, 6 (in a passage quoted later in his judgment by Goulding J [1984] ICR 589, 601):
‘If the managing director is right in thinking that there are features in the plaintiffs' process which can fairly be regarded as trade secrets and which their employees will inevitably carry away with them in their heads, then the proper way for the plaintiffs to protect themselves would be by exacting covenants from their employees restricting their field of activity after they have left their employment, not by asking the court to extend the general equitable doctrine to prevent breaking confidence beyond all reasonable bounds.’
It is clearly impossible to provide a list of matters which will qualify as trade secrets or their equivalent. Secret processes of manufacture provide obvious examples, but innumerable other pieces of information are capable of being trade secrets, though the secrecy of some information may be only short-lived. In addition, the fact that the circulation of certain information is restricted to a limited number of individuals may throw light on the status of the information and its degree of confidentiality. (c) Whether the employer impressed on the employee the confidentiality of the information. Thus, though an employer cannot prevent the use or disclosure merely by telling the employee that certain information is confidential, the attitude of the employer towards the information provides evidence which may assist in determining whether or not the information can properly be regarded as a trade secret. It is to be observed that in E. Worsley & Co. Ltd v Cooper [1939] 1 All ER 290, 307D, Morton J attached significance to the fact that no warning had been given to the defendant that ‘the source from which the paper came was to be treated as confidential.’ (d) Whether the relevant information can be easily isolated from other information which the employee is free to use or disclose. In Printers & Finishers Ltd v Holloway [1965] RPC 239, Cross J considered the protection which might be afforded to information which had been memorised by an ex-employee. He put on one side the memorising of a formula or a list of customers or what had been said (obviously in confidence) at a particular meeting, and continued, at p. 256:
‘The employee might well not realise that the feature or expedient in question was in fact peculiar to his late employer's process and factory; but even if he did, such knowledge is not readily separable from his general knowledge of the flock printing process and his acquired skill in manipulating a flock printing plant, and I do not think that any man of average intelligence and honesty would think that there was anything improper in his putting his memory of particular features of his late employer's plant at the disposal of his new employer.’
For our part we would not regard the separability of the information in question as being conclusive, but the fact that the alleged ‘confidential’ information is part of a package and that the remainder of the package is not confidential is likely to throw light on whether the information in question is really a trade secret.” (a) The nature of the employment. Thus employment in a capacity where ‘confidential’ material is habitually handled may impose a high obligation of confidentiality because the employee can be expected to realise its sensitive nature to a greater extent than if he were employed in a capacity where such material reaches him only occasionally or incidentally. (b) The nature of the information itself. In our judgment the information will only be protected if it can properly be classed as a trade secret or as material which, while not properly to be described as a trade secret, is in all the circumstances of such a highly confidential nature as to require the same protection as a trade secret eo nomine. The restrictive covenant cases demonstrate that a covenant will not be upheld on the basis of the status of the information which might be disclosed by the former employee if he is not restrained, unless it can be regarded as a trade secret or the equivalent of a trade secret: see, for example, Herbert Morris Ltd v Saxelby [1916] 1 AC 688, 710 per Lord Parker of Waddington and Littlewoods Organisation Ltd v Harris [1977] 1 WLR 1472, 1484 per Megaw L.J. We must therefore express our respectful disagreement with the passage in Goulding J's judgment at [1984] ICR 589, 599E, where he suggested that an employer can protect the use of information in his second category, even though it does not include either a trade secret or its equivalent, by means of a restrictive covenant. As Lord Parker of Waddington made clear in Herbert Morris Ltd v Saxelby [1916] 1 AC 688, 709, in a passage to which Mr. Dehn drew our attention, a restrictive covenant will not be enforced unless the protection sought is reasonably necessary to protect a trade secret or to prevent some personal influence over customers being abused in order to entice them away. In our view the circumstances in which a restrictive covenant would be appropriate and could be successfully invoked emerge very clearly from the words used by Cross J in Printers & Finishers Ltd v Holloway [1965] 1 WLR 1, 6 (in a passage quoted later in his judgment by Goulding J [1984] ICR 589, 601):
‘If the managing director is right in thinking that there are features in the plaintiffs' process which can fairly be regarded as trade secrets and which their employees will inevitably carry away with them in their heads, then the proper way for the plaintiffs to protect themselves would be by exacting covenants from their employees restricting their field of activity after they have left their employment, not by asking the court to extend the general equitable doctrine to prevent breaking confidence beyond all reasonable bounds.’
It is clearly impossible to provide a list of matters which will qualify as trade secrets or their equivalent. Secret processes of manufacture provide obvious examples, but innumerable other pieces of information are capable of being trade secrets, though the secrecy of some information may be only short-lived. In addition, the fact that the circulation of certain information is restricted to a limited number of individuals may throw light on the status of the information and its degree of confidentiality. (c) Whether the employer impressed on the employee the confidentiality of the information. Thus, though an employer cannot prevent the use or disclosure merely by telling the employee that certain information is confidential, the attitude of the employer towards the information provides evidence which may assist in determining whether or not the information can properly be regarded as a trade secret. It is to be observed that in E. Worsley & Co. Ltd v Cooper [1939] 1 All ER 290, 307D, Morton J attached significance to the fact that no warning had been given to the defendant that ‘the source from which the paper came was to be treated as confidential.’ (d) Whether the relevant information can be easily isolated from other information which the employee is free to use or disclose. In Printers & Finishers Ltd v Holloway [1965] RPC 239, Cross J considered the protection which might be afforded to information which had been memorised by an ex-employee. He put on one side the memorising of a formula or a list of customers or what had been said (obviously in confidence) at a particular meeting, and continued, at p. 256:
‘The employee might well not realise that the feature or expedient in question was in fact peculiar to his late employer's process and factory; but even if he did, such knowledge is not readily separable from his general knowledge of the flock printing process and his acquired skill in manipulating a flock printing plant, and I do not think that any man of average intelligence and honesty would think that there was anything improper in his putting his memory of particular features of his late employer's plant at the disposal of his new employer.’
For our part we would not regard the separability of the information in question as being conclusive, but the fact that the alleged ‘confidential’ information is part of a package and that the remainder of the package is not confidential is likely to throw light on whether the information in question is really a trade secret.” (2). Breach of Contract[75]The Claimant relies on the express terms set out in the contracts of employment and NDAs of the Individual Defendants – those terms are what they are and do not give rise to any particular issues of construction or other legal considerations. Whether the Claimant succeeds on this ground, ultimately becomes an issue of fact dependent upon whether the evidence indicates that the Individual Defendants acted in breach of the express terms to which they were subject. (3). Unlawful Means Conspiracy[76]The same cannot be said for the tort of unlawful means conspiracy as to which there are various elements which need to be established before the tort is made out. Starting with the definition set out in Clerk & Lindsell on Torts, 24th Edn, paragraph 23-108, the states that the tort is committed:
“….where two or more persons combine and take action which is unlawful in itself with the intention of causing damage to a claimant who does incur the intended damage.”
[77]The unlawful action for these purposes can comprise acts which are civilly actionable, such as a breach of contract (see for example Aerostar International Ltd v Wilson [2010] EWHC 2032 (Ch) at paragraphs 171-2) as well as breaches of the equitable duty of confidence (see for example Recovery Partners GB Ltd v Rukhadze [2018] EWHC 2918 (Comm) at paragraph 442).[78]For the tort to be made out, it is also necessary to establish “knowledge” on the part of the Defendants – in the sense that they are aware of the facts which render the acts unlawful. They do not have to be aware of “the unlawfulness of the means employed” – per Arnold LJ in Racing Partnership Ltd v Sports Information Services Ltd [2020] EWCA Civ 1300, at paragraph 139.[79]As to the tort “incurring the intended damage”, this is essentially an issue of causation – as Arnold LJ put the matter in the Racing Partnership Ltd case (at paragraph 154):
“The unlawful means must have caused loss to the claimant, rather than merely being the occasion of such loss being sustained. As I see it, this is the best explanation of the courier service/pizza delivery example: in that example the claimant’s loss is caused by customers (who may be presumed not to appreciate that the defendant is systematically breaking the law and some of whom may prefer the defendant’s service for other reasons) choosing to place their orders with the defendant, and so the unlawfulness is the occasion for the loss rather than the direct cause of it.”
[80]The reference to the pizza courier example is to one in which a pizza delivery service obtains more orders as a result of instructing its drivers to drive unlawfully – the loss to a competitor is incidental to the unlawful means which the courier has adopted and not a direct cause of it.[81]The requirement is that the Defendant’s unlawful means were causally connected to the Claimant’s losses. As Lord Walker stated in Revenue & Customs Commissioners v Total Network SL [2008] 1 AC 1174 (at paragraph 93):
“unlawful means, both in the intentional harm tort and in the tort of conspiracy, include both crimes and torts (whether or not they include conduct lower on the scale of blameworthiness) provided that they are indeed the means by which harm is intentionally inflicted on the claimant (rather than merely incidental to it).”
(emphasis added)[82]The Defendant’s intention need not primarily be to injure the Claimant – it is enough that the Defendant intended to cause harm. The matter was put as follows by Lord Sumption in JSC BTA Bank v Ablyazov (No.14) [2018] UKSC 19, at paragraph 13:
“…a conspiracy may be directed against the claimant notwithstanding that its predominant purpose is not to injure him but to further some commercial objective of the defendant.”
[83]Where a party’s gains necessarily involve losses to the Claimant, the Defendant may be taken to have intended the Claimant’s losses as “the other side of the coin” to its gains. In E D & F Man Capital Markets Ltd v Come Harvest Holdings Ltd [2022] EWHC 229 (Comm) QBD, the Defendant had provided its nickel purchasing receipts to be counterfeited, knowing that the licences were used to obtain finance from the Claimant and other financiers. The Defendant’s sole concern was the economic benefit it derived from the activity; nonetheless its knowledge of the collateral harm caused to the Claimant was sufficient to establish intention. Calver J accepted the “obverse side of the coin” argument. He stated at [531]:
“It follows that Straits [the Defendant] sought to advance its own business by pursuing a course of conduct which it knew would, in the very nature of things, necessarily be injurious to MCM [the Claimant] and to western financiers such as MCM. Straits’ state of mind accordingly satisfies the mental ingredient of the tort.”
[84]It is the Claimant’s case that, in circumstances in which it operates within a small market, it should be taken as inevitable that any unlawful gains made by the Defendants which cause identifiable loss to the Claimant should be taken as having been intended by the Defendants. In that regard, the Claimant relies on the words of Lord Hamblen in Secretary of State for Health v Servier Laboratories [2021] UKSC 24, at paragraph 95 as follows:
“An important reason why that is so is that the House of Lords in OBG rejected a narrow and specific test of intention which requires targeting of the claimant. Instead, it laid down a test of intention which includes intending harm as a means to an end, such as enrichment. Consequences that are the necessary means by which the defendant’s aim is achieved are taken to be intended. In the economic context of the unlawful means tort this may operate very broadly. Competition is the essence of trade and it involves gain at the expense of others.”
(emphasis added). (4). Inducement to breach of contract[85]A helpful summary of the principles applicable to this tort has been provided in the judgment of Arnold LJ in Northamber plc v Greene World Limited [2024] EWCA Civ 428 at paragraph 30 as follows:
“In order for A to be liable in tort for inducing B to breach a contract with C, the following requirements must be satisfied: (1) there must be a breach of contract by B; (2) A must induce B to break the contract with C by persuading, encouraging or assisting them to do so; (3) A must know of the contract and know that their conduct will have that effect; (4) A must intend to induce the breach of contract either as an end in itself or as the means to achieving some further end; and (5) A must have no lawful justification for that conduct.”
[86]As to the second of those requirements, Lord Hoffman in OBG v Allan [2008] 1 AC, at paragraph 36, said the question for consideration was this:
“…did the defendant’s acts of encouragement, threat, persuasion and so forth have a sufficient causal connection with the breach by the contracting party to attract accessory liability?”
[87]In Kawasaki Kisen Kaish Ltd v James Kemball Limited [2021] EWCA Civ 33, Popplewell LJ, at paragraph 33, said this:
“If A’s conduct is not capable of influencing a choice by B whether or not to breach the contract, it is not capable of amounting to inducement; it cannot operate on the mind or will of B so as qualify as causative participation as an accessory to his breach.”
[88]The relevant influence need not be shown to be the main/principal cause of the breach – as long as there is persuasion, encouragement or assistance which was an operative case, that will suffice for these purposes in establishing the tort – see Popplewell LJ in Kawasaki Kisen at paragraph 22.[89]The position is less straightforward in circumstances in which there is a group of individuals who have in some sense acted in concert – are they to be taken as each having procured the other’s breach of contract by their mutual agreement? In general terms, the answer to that question is likely to be ‘no’. As Lord Templeman said in CBS Songs Ltd v Amstrad Consumer Electronics [1988] AC 1013, at 1058H paragraph 36:
“Generally speaking, inducement, incitement or persuasion to infringe must be by a defendant to an individual infringer and must identifiably procure a particular infringement in order to make the defendant liable as a joint infringer.”
[90]It may be easier to infer inducement in circumstances in which a competitor has received confidential information from an employee of a company – for example in Premier Model Agency v Bruce [2012] EWHC 3509 (QB), Simon Crookenden QC, sitting as a Deputy High Court Judge, was able to do so in circumstances in which the Claimant’s confidential information was provided by an employee, Mr Bruce, to a director of a competitor business, Mr Ribiero. The Judge inferred that receipt of the information amounted to encouragement of the breach of contract by Mr Bruce. However, a significant part of the circumstances from which the Judge felt able to draw such an inference was that the two individuals had been relationship partners for a substantial period of time, from which the Judge concluded that there must have been discussion between them about the information that was disclosed by Mr Bruce.[91]Dealing next with the issue of knowledge and intention on the part of the alleged tortfeasor, the Defendant must know that he is inducing a breach of contract – albeit that this will include “blind eye” knowledge – that is turning a blind eye to terms of a contract which he knows exists – see OBG v Allen per Lord Hoffman at paragraphs 40-41. As to intention, Lord Hoffman (at paragraph 62) in the same case said this:
“In the Lumley v Gye tort, there must be an intention to procure a breach of contract. In the unlawful means tort, there must be an intention to cause loss. The ends which must have been intended are different. … one may intend to procure a breach of contract without intending to cause loss. Likewise, one may intend to cause loss without intending to procure a breach of contract. But the concept of intention is in both cases the same. In both cases it is necessary to distinguish between ends, means and consequences.”
[92]Whilst there is in theory a defence of justification which might be raised in response to a claim for inducement to breach of contract, no such defence has been advanced by the Defendants in the present case – and on the facts as they appear to me, there is no conceivable basis on which such an argument might be deployed. (5). Copyright and Rights Databases Regulations 1997 (“the 1997 Regulations”)[93]The Claimant’s case is that it is the maker of a database within the meaning Regulations 14(1) and/or 14(2) 1997 Regulations, the database being Zoho One (including its suite of applications, such as Zoho Analytics) and the customer information stored on it. The meaning of “database” is set out in section 3A(1) Copyright, Designs and Patents Act 1988 (“the 1988 Act”) as follows:
“3A. —(1) In this Part “database” means a collection of independent works, data or other materials which— (a) are arranged in a systematic or methodical way, and (b) are individually accessible by electronic or other means.”
[94]A property right – or “database right” is defined in Regulation 13(1) 19997 Regulations as follows:
“13. —(1) A property right (“database right”) subsists, in accordance with this Part, in a database if there has been a substantial investment in obtaining, verifying or presenting the contents of the database.”
[95]Regulation 14 so far as is relevant provides as follows:
“(1) Subject to paragraphs (2) to (4), the person who takes the initiative in obtaining, verifying or presenting the contents of a database and assumes the risk of investing in that obtaining, verification or presentation shall be regarded as the maker of, and as having made, the database. (2) Where a database is made by an employee in the course of his employment, his employer shall be regarded as the maker of the database, subject to any agreement to the contrary.”
[96]“Acts infringing database right” are dealt with in Regulation 16 which provides as follows:
“(1) Subject to the provisions of this Part, a person infringes database right in a database if, without the consent of the owner of the right, he extracts or re-utilises all or a substantial part of the contents of the database. (2) For the purposes of this Part, the repeated and systematic extraction or re-utilisation of insubstantial parts of the contents of a database may amount to the extraction or re-utilisation of a substantial part of those contents.”

Discussion

[97]Before addressing the particular legal claims which have been made by the Claimant in this case, it may be worthwhile to set out in general terms my broad conclusions on some of the key factual issues on which those claims are based. As will be apparent from a number of observations that I have already made, I am completely satisfied that each and every one of the Defendants in this case has behaved in a dishonest and reprehensible way and has persisted in doing so from the point in time at which they decided to leave the Claimant’s employment right up to the end of this hearing at which they presented their final written and oral arguments in support of their defences to the Claimant’s claims. The evidence against them is, in short, overwhelming.[98]Whilst it is not clear from the evidence which of the Individual Defendants came up with the idea of setting up a business in competition with the Claimant, it is clear that at some point, all of them were working together to a common end which involved not just the establishment of the First Defendant but also the exploitation of the data which was to be taken – and was taken - from the Claimant’s database. Once the Claimant’s customer information was copied from its Zoho/CRM database, it was then used by the Defendants to contact those customers and persuade them to purchase coins through the First Defendant. The fact that nearly 98% (172/176) of the sales made by the First Defendant were to customers of the Claimant is damning evidence which the Defendants have entirely failed to explain. The idea that – as a matter of pure coincidence – 98% of sales were innocently made to the Claimant’s customers, is simply fanciful. That level of sales could only have been effected by using data that had been taken from the Claimant.[99]The Individual Defendants (with the exception of the Eighth Defendant who had long since left the Claimant’s employment) contrived a grievance process with a view to creating an equally contrived exit strategy based on purported constructive dismissal. The exit strategy was designed as a precursor to working in, and owning part of, the First Defendant. Suggestions that the presence of most of the Individual Defendants at the First Defendant’s premises was solely for the purpose of discussing their collective grievance, are implausible and I reject them. Equally implausible are suggestions from such Defendants that, where the evidence demonstrates involvement with the First Defendant’s business, this consisted only of offering occasional or ad hoc assistance to a friend, the Eighth Defendant. Whilst I have no doubt that all of the Individual Defendants knew each other well and were indeed friends, the assistance that was clearly provided to the Eighth Defendant, was in furtherance of the integration of the remaining Individual Defendants into the First Defendant’s operation, into which each of them became deeply embedded in the period roughly from March-June 2025.[100]It is clear from their ill-advised responses to the letters before action which were sent to them on 20 June 2025, that the Individual Defendants have dug themselves into a hole from which they have doggedly refused to move, save to the extent of digging further into that hole – they continued to do so even as the evidence against them piled up, particularly after the disclosure of documents obtained from Zoho. Throughout the entire process of the litigation, they have persisted with accounts which do not in any sense bear scrutiny. (1). Breach of confidence[101]I am satisfied that the Individual Defendants owed the Claimant a duty of confidence with regard to the latter’s confidential information contained in its CRM system. Each of the Defendants worked in a sales role and was allocated a body of clients to whom their task was to sell. In order to do so, they used data which was compiled by the Claimant and which consisted not simply of contact details but information about their particular interests and purchases of coins that they had made in the past. The salesperson was then able to tap into that information to increase the chances of making a sale to any given customer. Those customers exist within a niche market and I am satisfied that the Claimant has invested significant amounts of time and money in building up a database from which it can then operate its business. The fact that the Individual Defendants were – somewhat unusually – required to enter into NDAs as part of their employment, only serves to underline the importance that the Claimant attached to its customer information. Not only am I satisfied that such a duty was owed by the Individual Defendants to the Claimant but I am equally satisfied that that duty persisted after their employment with the latter had come to an end.[102]Turning to the question of whether the Individual Defendants have acted in breach of that duty, as I have already indicated, the evidence is overwhelming in demonstrating that the Individual Defendants were all involved in the removal and/or exploitation of confidential information to which they had access whilst employed by the Claimant but which they well knew could not be taken by them for use in other employment. This applies even to the Eighth Defendant, for although he had left the employment of the Claimant well before the events material to this claim, he knew full well that the Claimant’s information that he had received as a result of other Individual Defendants copying or downloading it, was confidential and that he owed a duty of confidentiality in relation to it. Instead of maintaining that duty, he used the information as the basis from which to begin the operation of the First Defendant company which he had set up. In addition, all of the Individual Defendants were materially involved in the setting up and running of the First Defendant’s operation which they knew would be reliant on making sales using information taken in breach of confidence from the Claimant. (2). Breach of Contract[103]The terms of the contracts of employment and NDAs are clear. I am satisfied that the Individual Defendants (with the exception of the Eighth Defendant) have acted in breach of clauses11.1 and11.2 as well as the implied terms of fidelity and trust and confidence. Given that he left the employment of the Claimant on 4 October 2022, I find that his breach of his contract of employment extended only to a breach of clause 11.2 based on his misuse of confidential information after his employment had come to an end.[104]All of the Individual Defendants have also breached the terms of their NDAs, in particular clause 2.2.2 (use of confidential information). (3). Unlawful means conspiracy[105]In my view the evidence which I have set out at length above undeniably points to the Individual Defendants having agreed between themselves to seek to establish a business in competition with the Claimant but based on the use of data that to which they knew were not entitled. It is clear that all of the Individual Defendants were involved in the removal of the Claimant’s confidential information and its misuse thereafter to undertake sales to the Claimant’s customers for the benefit of themselves and the First Defendant – there is, in short, no sensible basis on which a distinction could properly be drawn as between the individuals involved.[106]Dealing with the particular elements of the tort:a. Combination – I am satisfied that all of the Defendants operated together for the purpose of establishing the First Defendant’s business in which they were all to be participants;b. Unlawful means – the Individual Defendants, as part of their agreement, used unlawful means in the form of the removal/copying of the Claimant’s confidential information;c. Knowledge – the Individual Defendants each had full knowledge of the facts of the removal and exploitation of the Claimant’s confidential information. The Defendants were aware of the duties that they owed to the Claimant and took the steps that they did knowing full well that in doing so, they were acting in breach of those duties;d. Damage – it is beyond argument that the Claimant has suffered damage as a result of the acts taken in combination by the Individual Defendants. The Claimant at the lowest level lost sales but thereafter, lost customers, Mr Mellinger’s evidence being that many of its former customers who have bought coins through the First Defendant have not returned to the Claimant’s fold;e. Instrumentality – the means adopted by the Individual Defendants were plainly connected to losses sustained by the Claimant which were consequential on the unlawful copying/removal of its data;f. Intention – it may be that the Individual Defendants did not have as their primary goal, an intention to harm the Claimant but the fact that they intended to use its confidential information in order to make sales to its customers, in my view leads to the conclusion that they had sufficient intention to cause harm to the Claimant. They were, it seems to me, fully aware that they were operating within a small, specialist market with a limited pool of customers, selling to the Claimant’s customers necessarily involves taking business away from their former employer, either in the form of individual sales or by persuading such customers to make the First Defendant their dealer of choice, ahead of the Claimant. (4). Inducement to breach of contract[107]Whilst I do not rule out the possibility of this tort being established in the context of a group of employees acting in concert against their employer/former employer by individual acts of relevant inducement of each other, I do not believe that the evidence in this case properly supports such a finding. I fully accept that the Individual Defendants acted in concert but I am unable to identify evidence which would justify a finding against any or all of them that they induced their colleagues or former colleagues to breach the terms of their employment with the Claimant. The question of inducement is, as Mr Northall suggests (based on the decision in Alesco Risk Management Services v Bishopsgate Insurance Brokers Ltd [2019] EWHC 2839)“broad and fact specific”, I do not accept that it has been established in this case. (5). Copyright and Rights Databases Regulations 1997[108]I accept that the data contained on the Claimant’s CRM system, based on its use of the Zoho platform amounts to a “database” within section 3A 1988 Act. I also accept that, under Regulation 13 1997 Regulations, a database right subsists in relation to it as the Claimant has evidenced substantial investment in obtaining, verifying or presenting its contents. The Claimant is the maker of the database within Regulation 14 and based on the evidence of extraction and misuse set out above, the Defendants have each infringed its rights within the scope of Regulation 16.

Relief sought by the Claimant

[109]The Claimant seeks a final injunction based on the terms set out in the Glasson KC Order but including new elements which is says are “to reflect the wrongdoing of the Individual Defendants that has now been discovered and to seek to undo the harm that has already been caused.” In the light of its liquidation relief is not sought as against the First Claimant. Similarly, no relief is sought against the Fifth Defendant in respect of whom terms of settlement were agreed with the Claimant.[110]Under the terms of the draft sought by the Claimant, it seeks an extension of the period covered by paragraph 7 of the Glasson KC Order which deals with the springboard element of its claims. It seeks an order that the period be extended by a further 24 months from the date of the order. This would take us to June 2028 which in my view is somewhat excessive. 18 months is to my mind the correct period, bearing in mind that the Individual Claimants did not do any material work for the First Defendant after around June 2025. The period of 18 months from the date of this order will ensure that the springboard last for the best part of two and a half years in total which in my view in long enough to neutralise any advantage that the Individual Defendants have obtained from extracting/copying and then utilising the Claimant’s confidential information.[111]The Claimant also seeks further orders for delivery up of confidential information and confirmatory affidavits, as well as device and account imaging. I do not propose to make any further orders in this regard. Having heard the evidence of those Defendants who attended the trial and having had regard more generally to the positions that they have adopted, I do not see any utility in requiring them effectively to repeat the exercise required of them under the terms of the Glasson KC Order. Furthermore, it is unlikely that any such process would add materially to the wealth of evidence indicating the nature and extent of the Defendants’ unlawful activity and which I have considered in this judgment and in respect of which I have concluded that the Claimant’s position is properly protected by the additional period of 18 months which I have ordered by way of springboard relief.

Referral to the Law Officers for the commencement of contempt proceedings

[112]Whilst the extent of the Defendants’ failures to give a true account of their actions may be substantial, referral to the Law Officers for possible contempt proceedings, remains an exceptional step which I am not prepared to take on this occasion.

Costs and final Order

[113]On the face of it, the Claimant would appear to have a strong claim for its costs of these proceedings to be paid by the Defendants. However, I have not heard argument on the point and it may be that the Claimant will seek to have its costs paid on an indemnity basis. For those reasons, I invite the Claimant, within 14 days of the hand down of this Judgment, to produce a draft Order and short written submissions on costs which reflect the conclusions that I have reached above as well as setting out its position on the latter question. These should be filed with the Court and sent to the Individual Defendants. Within 14 days thereafter, the Individual Defendants should provide their own submissions in response, which should include anything that they have to say with regard to the form of the final Order. Within a further 7 days, the Claimant should provide any submissions in reply. Thereafter, I will deal with the matter on paper and without a further hearing.