Breach of Confidence:

Question:How can Ontario paralegals help me if my business recipe or proprietary process was shared in confidence and then misused?

Answer:Gutoski Legal Services can help you assess a breach of confidence claim in Ontario if confidential business information was shared in confidence, then misused, typically requiring proof that the information had the necessary quality of confidence, was communicated in circumstances importing an obligation of confidence, and was used without authorization to your detriment.   If you share what happened, we can explain your likely legal options, document the confidential context and misuse, and outline next steps for a complaint or lawsuit.   To discuss your situation, call (289) 902-0227 for a paralegal consultation in Ontario.

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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 Gutoski Legal Services by phone at: (289) 902-0227 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.