Breach of Confidence
Businesses have sensitive and confidential information such as client lists, trade secrets, and business practices. A party may breach their obligation to keep this information confidential, leaving your business in a difficult position. If this occurs, you can pursue an action for breach of confidence.
A successful breach of confidence claim requires three elements:
- The information must have the necessary quality of confidence (meaning, the information is not otherwise publicly available);
- The information must have been disclosed in circumstances where there is an obligation of confidence (meaning, there was a direct promise to keep the “information” confidential, or the circumstances that make it clear that the information was intended to be confidential and not meant to be circulated widely without express consent); and
- There must have been an unauthorized use of that information to the detriment of the party whose confidentiality is breached by the unauthorized use (the “detriment” can be in the form of economic losses or psychological and emotional harm).
Breach of confidence often occurs in the employment context. Throughout the course of employment, many of your employees will learn sensitive and confidential information. To protect your interests, you should ensure all contracts, whether employment or commercial contracts, contain restrictive covenants stating that confidential information cannot be shared without consent.
Hum Law Firm has experience dealing with breach of confidence actions, both in the employment and business context. We are here to assist protect your business.