A former managing director (MD) of a supplier of materials to the construction industry has agreed not to disclose or utilise information allegedly taken by him to help any rival to switch its business to them, the High Court heard.
Dublin-headquartered Laydex Ltd last week brought proceedings against former MD Gerard Callan seeking injunctions restraining him from using that information or disclosing or making it available to others.
The injunctions were also sought against Nora Treacy, regional sales manager with international pharma company Eli Lilly, and described in court papers as a close personal friend of Mr Callan.
Permission to serve the proceedings on the defendants was granted in a one-side-only represented application by Laydex last week.
RM Block
The case returned on Tuesday when Joe Jeffers SC, for Laydex, told Mr Justice Brian Cregan the defendants were prepared to give undertakings not to disclose, utilise or delete any of the information sought.
Other parts of the injunction application relating to Laydex wanting orders to allow a forensic IT consultant to examine data on the defendants’ electronic devices and associated matters would be a matter of discussion between the parties over the next two weeks, Mr Jeffers said.
If that cannot be agreed, he said he may ask the court to hear an application in relation to it.
Colmcille Kitson, for the defendants, said there had been agreement for two weeks in relation to some of the reliefs sought by Laydex but that was not to be taken as an acceptance that there was any need to bring these proceedings.
Mr Jeffers responded that his side would have “quite a bit to say about the necessity for bringing the proceedings” if and when the court has to deal with the matter.
Mr Justice Cregan adjourned the case for two weeks.
Laydex believes Mr Callan, prior to his departure from the company, tried to engineer a situation where his position would be untenable and Laydex would have no alternative but to pay him a golden handshake.
In December 2024, it is claimed, having made clear his intention was to retire, terms were agreed with Mr Callan for his departure including a €35,000 redundancy payment with an extra €10,000 provided he did not compete with Laydex.
In March, Laydex heard Mr Callan had started working for competitor Fortune Ltd.
A review of Mr Callan’s company email account gave rise for concern and it also transpired he had sent quite an amount of company information to Ms Treacy and to his son Rory who has no connection with Laydex.
Laydex said it began getting calls from suppliers claiming Mr Callan had been actively pursuing Laydex suppliers and agents.