What Is a Breach of Confidence?

Share at:
AI Share Buttons - Mobile Logo Only
LinkedIn
X
Facebook
WhatsApp
Threads

Introduction

As mentioned in What Happens If There Is a Privacy Breach of NDA Information? a breach of confidence is the unauthorised use of information which was disclosed. The elements that give rise to a breach of confidence are:

Elements of a Breach of Confidence

  1. Information must have to be confidential – essentially this information should not be available in the public domain
  2. Information must be taken under an obligation of confidence – a reasonable person would know that it was confidential
  3. Use of confidential information caused damage to you – the accused divulged and used that information knowing that it would detriment you

Sometimes the situation arises where a third party or stranger gets access to this confidential information. If that third party has knowledge of the obligation of confidence liability may arise. To clarify this, reach out to one of our commercial lawyers.

Defences

Before making any claim against someone for a breach of confidence, it is important to ensure there is no valid defence for that information being disclosed. There are a few instances where disclosing confidential information is legally

  • If that information threatens the general public (best interests of the public)
  • Disclosed to proper authorities (e.g. police, regulatory etc)
  • Ordered during court proceedings

Remedies

If you are successful in a claim for breach of confidence, the remedies available are:

  • An injunction – court order requiring a person to do or cease doing a specific action
  • Account of profits – action against a person in a fiduciary relationship to recover the profits made due to the breach in order to prevent unjust enrichment
  • Compensation for economic loss (may even be able to claim compensation if there was no commercial loss due to facing other losses involved in chasing the breach)

Conclusion

Important to note that this area is dealt with under equity including remedies. It would be best to seek legal advice from one of the business lawyers available in our marketplace.

Unsure where to start? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.

Share at:
AI Share Buttons - Mobile Logo Only
LinkedIn
X
Facebook
WhatsApp
Threads
Most Popular Articles
You may also like
Recent Articles

Get the latest news

By clicking on 'Sign up to our newsletter' you are agreeing to the Lawpath Terms & Conditions

Share:

eBook

Download our eBook,
Hiring Your First Employee

Our eBook covers the necessary legal and financial considerations you should make when hiring your first employee.

You may also like

From Singh to Smith, discover the surprising names driving Australia’s entrepreneurial boom backed by data.
EasyCompanies has shut down, but your business is still safe. Learn what this closure means and how Lawpath can help you move forward.
Australia’s startup culture is getting younger, with Gen Z and Millennial founders driving the fastest growth in new businesses.