Asia/Pacific News
Singapore High Court Lifts Injunction on Former Dan-Bunkering Executive
The Singapore High Court has said it overturned an injunction against a former bunkering executive from A/S Dan-Bunkering's Shanghai office which prevented him from joining rival firm Chemoil Energy Limited (Chemoil) before April 1, 2013, in line with a non-competition clause in his contract.
Dan-Bunkering had argued that 'irreparable damage' would be caused to the Danish firm if the injunction against Tan Chee Hiong Alan was lifted.
But Justice Choo Han Teck said "it is easy to claim irreparable harm and applicants almost invariably do."
"The plaintiff may lose some business to Chemoil but that in my view is not irreparable harm," he continued, adding "if it were, injunctions will become the norm and not the exception."
He also labelled as "ironic" Dan-Bunkering's claim that lifting the ban would make the trail "pointless", as "all that the plaintiff wanted in this action was to stop the defendant from working for Chemoil until April 1, 2013."
If the injunction was not discharged by the time the trial begins, Dan-Bunkering would have achieved their aim, but if Mr Tan is found guilty of breach of contract, Dan Bunkering still has to prove that the breach resulted in loss and damage to it.
Agreeing that assessment of damages would not be easy, Justice Choo said, "the court will as far as possible lean in favour of ensuring that a promise is kept. A breach of a commercial promise, however, can have unclear edges which blurs not only one's legal rights but also his moral gaze."
"Thus its judgment on breach and its consequences is best left to trial," he concluded.
A request to allow the matter to proceed to the Court of Appeal was denied with Justice Choo saying, "Sometimes great drama might be produced from a limited script - but this was not such a case."
Industry Giants
Council for Dan-Bunkering, Mr Danny Ong, described the rival companies as "two giants in the bunker trading industry."
Mr Tan was formally a relationship manager for 81 customers including seven key accounts in terms of revenue and was said to be paid about $200,000 a year.
Described as "a top performer in the industry" and a "rising star", he was said to have possession of confidential information including the Dan-Bunkering "Critical & Observation List" which purportedly contained confidential information about their customers.
Mr Tan had signed a contract containing a 1 year non-competition clause restricting him from joining a rival firm until April 1, 2013.
After failing to re-negotiate the term to six months, he resigned on February 6, 2012 with his employment ending on March 31, 2012 after a period of garden leave.
After informing his former employer he was to join rival firm Chemoil on March 30, 2012, Dan Bunkering was granted an ex parte injunction prohibiting him from so doing.
Mr Tan applied to have that discharged on June 8, 2012, which on July 6, 2012 was granted and the injunction set aside.
Council for Dan-Bunkering said "there is a great interest in the industry for a ruling on the law," and bunker industry watchers are reported to be keen to see how the courts will enforce the non-competition clause.
