1. ) LEE YIK CHIEH 2. ) SOH CHIN YIN 3. ) EUROASIA TOTAL LOGISTICS (M) SDN. BHD. v OTL ASIA SDN. BHD. (dahulunya dikenali sebagai CKE TRANSPORT AGENCY SDN. BHD.)

p-02ncvcw-2102-12-2023 Court of Appeal (Mahkamah Rayuan) 1 December 2024 • P-02(NCvC)(W)-2102-12/2023 • 52 min read
7 cases cited (1 SG, 6 foreign)

Outcome

The appeal is dismissed with costs of RM 20,000.00 to the respondent subject to allocator.

Quoted verbatim from the judgment of Court of Appeal (Mahkamah Rayuan) (p-02ncvcw-2102-12-2023). Read the full judgment on the official Malaysia Courts portal for the complete decision.

Catchwords

Employment Law — Confidential information — Post-employment duty — Common law and contractual obligation — Continuing fidelity after termination Employees owe a continuing duty of confidentiality and fidelity even after leaving employment, particularly in competitive industries involving trade secrets. Confidentiality — Breach of confidence — Coco v AN Clark elements — Applied and affirmed — Confidential nature, obligation, unauthorised use, detriment The court reaffirmed the three Coco elements: confidentiality of information; obligation of confidence; unauthorised use resulting in detriment. Elements (i) and (ii) admitted; dispute centred on use and detriment. Evidence — Burden of proof — Legal burden vs evidential shift — ss.101–103 & 106 Evidence Act — I-Admin presumption recognised — Karen Yap Chew Ling followed Plaintiff carries legal burden; s.106 EA shifts evidential burden where facts lie with defendant. I-Admin recognised as evidential presumption, not displacement of legal burden; applied consistently with Karen Yap Chew Ling. Breach — Inference of misuse — Circumstantial evidence — Pre-resignation downloads — Formation of competitor — Solicitation of plaintiff’s clients — No credible alternative explanation Misuse inferred from data downloads pre-resignation, immediate involvement in WICE-backed rival, solicitation of at least six key clients, and absence of plausible rebuttal. Evidence — Rebuttal — Implausible ransomware justification — Failure to delete/return data — s.106 EA engaged — Burden unmet Defence of ransomware backup rejected as untenable. Duty to delete/return confidential data persisted post-resignation; defendants failed to explain use. Damages — Detriment — Loss of major clients — Financial decline — Causal link inferred — Unrebutted financial records Plaintiff’s financial statements showed loss of major clients and negative margins post-departure; court inferred wrongful use of confidential data enabled rapid competitive entry. Tort — Conspiracy to injure — Unlawful means conspiracy — Combination, intent, overt acts, damage — Circumstantial chain established Defendants jointly incorporated rival entity, leveraged confidential data, solicited clients, and promoted competitive advantages, cumulatively evidencing unlawful means conspiracy.

Practice Areas

Employment & Industrial Relations

Judges (3)

Azhahari Kamal bin Ramli Delivered Lee Swee Seng Coram Wan Ahmad Farid bin Wan Salleh Coram

Counsel (9)

Alwin Rajasurya Firm Peter Huang & Richard Firm Diong Qian Counsel Appellant HR Dipendra Counsel Respondent Isaac Stephen Huang Counsel Appellant Liew Ji Wei Counsel Respondent Roshan Selvaratnam Counsel Appellant Tan How Siang Counsel Appellant Yong Shu Xhuan Counsel Respondent

Parties (4)

EUROASIA TOTAL LOGISTICS Sdn Bhd Appellant OTL ASIA Sdn Bhd Respondent Lee Yik Chieh Appellant Soh Chin Yin Appellant

Statutes Cited

Evidence Act 1950 (Cap 56)

Cases Cited (7)

SLR (1)
[2020] 1 SLR 1130
UK (1)
[1991] 3 All ER 303
MY (5)
[2010] 5 CLJ 32 [2010] 5 MLJ 394 [2011] 1 CLJ 51 [2016] 3 MLJ 417 [2016] 6 CLJ 176

Judgment

Read the full judgment on the official Malaysia Courts portal.

Read on eJudgment

Source: eJudgment (p-02ncvcw-2102-12-2023)