A.B. Consolidated restrained

Press, 4 May 1978, Page 13

A.B. Consolidated restrained

PA Wellington An injunction issued in the Supreme Court against A.B. Consolidated, Ltd, confectionary manufacturer, restraining it from making use of confidential information obtained during commercial negotiations with an overseas manufacturer, must stand, the Court of Appeal has ruled.

The court comprised Mr Justice Woodhouse (presiding), Mr Justice Richardson, and Mr Justice Quilliam.

The injunction was grantr ed on March 4 by Mr Justice Somers in the Supreme Court at Christchurch against A.B. Consolidated, in favour of Europe Strength Food Company, Ltd, of Victoria.

The respondent company was a member of a family of companies which used the generic name, Red Tulip, the court’s judgment said. The parent company of the whole group was in Chicago.

The appellant was a considerable New Zealand manufacturer with a well established marketing organisation in this country. Early in 1975, representatives of the two companies had had discussions concerning a joint-venture for the marketing in New Zealand of a novel type of confectionery which had been produced in Europe after much trial and error. In the end nothing came of the proposed joint venture, but A. B. Consolidated proceeded with the production of the new type of confectionery. “The general rule is that the court will restrain the improper or unfair use of confidential information that was provided for a limited purpose, and in our opinion Mr Justice Somers was right to grant a permanent injunction in the present case,” the judgment said. “What was done by A.B. Consolidated was quite deliberate.