Breach of Confidence:

Question: If someone misuses my confidential business information in Ontario, what claim can I pursue and how do I protect myself quickly?

Answer: If you think a party misused confidential business information they received in confidence, you may be able to bring a breach of confidence claim (a tort) if the information was confidential, communicated in confidence, and then used without authorization to your detriment, as outlined by the Supreme Court in Lac Minerals Ltd. v. International Corona Resources Ltd., [1989] 2 S.C.R. 574.   VP Legal Services & Notary can help you assess whether your facts fit the breach of confidence elements, document what was shared and when, and prepare next steps for a potential demand or proceeding while you protect your trade secrets and prevent further misuse using paralegal and notary services across Ontario, including Woodbridge, Milton, Etobicoke, Concord, and nearby communities, by calling (437) 286-1499.   A fast, organized consultation helps reduce delays and increases the chance of an effective early resolution.

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Misused Business Secrets

The success of a business may rely heavily upon secret recipes, proprietary software, unique systems, and customized processes; and accordingly, information relating to these key aspects may be highly valued with misuse of such confidential information quite harmful. In tort law, breach of confidence involves the wrongful use of information that was openly shared with the party that subsequently misuses the secretive information; and in this respect, breach of confidence differs from theft of trade secrets which would involve an element of misappropriation.

Note: Please contact VP Legal Services & Notary by phone at: (437) 286-1499 to discuss any specific questions that you may have.

The Law

Per the Supreme Court in the case of Lac Minerals Ltd. v. International Corona Resources Ltd., [1989] 2 S.C.R. 574, the elements requiring proof so to constitute a breach of confidence case are:

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

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

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

Conclusion

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