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Clarity in scope of remedies in claim of breach of confidence: Amber Compounding Pharmacy Pte Ltd and another v. Lim Suk Ling Priscilla and others

30 November 2023

Clarity in scope of remedies in claim of breach of confidence: Amber Compounding Pharmacy Pte Ltd and another v. Lim Suk Ling Priscilla and others

Clarity in scope of remedies in claim of breach of confidence: Amber Compounding Pharmacy Pte Ltd and another v. Lim Suk Ling Priscilla and others

This Singapore High Court decision arose from the preliminary determination of an issue in law – specifically, whether the plaintiffs were entitled to simultaneously claim for both wrongful gain interest and wrongful loss interest. The defendants previously admitted to unauthorized copying and access, and breach of confidence in respect of the plaintiffs’ confidential information.

In relation to breach of confidence, wrongful gain interest refers to the plaintiff’s interest in preventing others from wrongfully profiting from confidential information, whereas wrongful loss interest protects the confidentiality surrounding the said information, and additionally requires the defendant’s conscience to be impacted by its breach of its confidentiality obligations.

Having reviewed the law in relation to breach of confidentiality, the High Court applied the following principles:

  1. If there is a wrongful gain interest, the following elements must be present;
    1. The information possesses a quality of confidence;
    2. The information was imparted in circumstances importing an obligation of confidence; and
    3. There was unauthorized use of the information. In appropriate cases, the use occurred to the detriment of the party who originally communicated it.
  2. In situations where confidential information was acquired in an unauthorized manner, if the defendant’s conscience has been impacted in the breach of the obligation of confidentiality, then there is prima facie a wrongful loss interest. If the elements (a) and (b) set out above are found on the facts, the burden then shifts to the defendant to prove that its conscience was unaffected.

The court held that different remedies are warranted for each form of interest. Wrongful gain interest attracts, among others, a wide range of remedies including injunctions, delivery-up, as well as monetary remedies in the form of damages or equitable compensation. However, the court’s view was that, while equitable compensation may generally be an inappropriate remedy for wrongful loss interest in the absence of any use of confidential information, the court could still order equitable damages to be paid based on, among others, a quantifiable impression of the value of the confidential information, considering the additional cost the defendants would have incurred, had they not referred to the confidential information.

In its preliminary determination, the court held that a plaintiff in a breach-of-confidence dispute is entitled to plead that it is proceeding on both wrongful gain and wrongful loss interest. Each form of interest arises can arise on similar facts, but attracts different remedies.


About the author

 Denise Mirandah

Denise Mirandah

As a Director, Denise Mirandah has played a major role in the international promotion of the company, helping to share the family values of Mirandah Asia and its successful one-stop shop approach to IP with clients all over the world.

Denise has had a passion for IP from an early age and, as the daughter of Patrick and Gladys Mirandah, grew up in a household where IP was discussed regularly. She studied her Bachelor of Laws at the prestigious Cambridge University in the UK. There, she underwent rigorous academic training with the world’s most eminent legal minds, including Professor Bill Cornish, a renowned authority on IP law.

During her summer holidays, she attended Harvard University in the US to hone her drafting skills and familiarise herself with the American legal system, voluntarily working as part of Harvard’s pro bono programme in Boston.

Denise has been admitted to the Bar in Singapore since 2009, and in Brunei as of 2017.

 Wen Rui Jin

Wen Rui Jin

Wen Rui Jin graduated from the National University of Singapore with an LLB (Hons) in 2020, and was subsequently called to the Singapore Bar in August 2021. He started his legal career in shipping law at a Big Five law firm. As an associate at Mirandah Law, Jin works on various trademark matters and disputes, and takes on a broad range of other matters including general civil disputes. He also assists with patent infringement cases of the firm. 

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