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Law of Confidentiality G E Dal Pont Professor, Faculty of Law, University of Tasmania LexisNexis Butterworths Australia 2015 LexisNexis AUSTRALIA LexisNexis Butterworths 475–495 Victoria Avenue, Chatswood NSW 2067 On the internet at: www.lexisnexis.com.au ARGENTINA LexisNexis Argentina, BUENOS AIRES LexisNexis Verlag ARD Orac GmbH & Co AUSTRIA KG, VIENNA BRAZIL LexisNexis Latin America, SAO PAULO CANADA LexisNexis Canada, Markham, ONTARIO CHILE LexisNexis Chile, SANTIAGO CHINA LexisNexis China, BEIJING, SHANGHAI CZECH REPUBLIC Nakladatelství Orac sro, PRAGUE FRANCE LexisNexis SA, PARIS GERMANY LexisNexis Germany, FRANKFURT HONG KONG LexisNexis Hong Kong, HONG KONG HUNGARY HVG-Orac, BUDAPEST INDIA LexisNexis, NEW DELHI ITALY Dott A Giuffrè Editore SpA, MILAN JAPAN LexisNexis Japan KK, TOKYO KOREA LexisNexis, SEOUL LexisNexis Malaysia Sdn Bhd, PETALING JAYA MALAYSIA SELANGOR NEW ZEALAND LexisNexis, WELLINGTON Wydawnictwo Prawnicze LexisNexis, POLAND WARSAW SINGAPORE LexisNexis, SINGAPORE SOUTH AFRICA LexisNexis Butterworths, DURBAN SWITZERLAND Staempfli Verlag AG, BERNE TAIWAN LexisNexis, TAIWAN UNITED KINGDOM LexisNexis UK, LONDON, EDINBURGH USA LexisNexis Group, New York, NEW YORK LexisNexis, Miamisburg, OHIO National Library of Australia Cataloguing-in-Publication entry Author: Dal Pont, G E (Gino Evan). Title: Law of Confidentiality. Edition: 1st edition. ISBN: 9780409337921 (pbk). 9780409337938 (ebk). Notes: Includes index. Secrecy—Law and legislation—Australia. Disclosure of information—Law and legislation—Australia. Subjects: Law and secrecy—Australia. Confidential communications—Law and legislation—Australia. Privacy, Right of—Australia. Dewey Number: 342.940858. © 2015 Reed International Books Australia Pty Limited trading as LexisNexis. This book is copyright. Except as permitted under the Copyright Act 1968 (Cth), no part of this publication may be reproduced by any process, electronic or otherwise, without the specific written permission of the copyright owner. Neither may information be stored electronically in any form whatsoever without such permission. Inquiries should be addressed to the publishers. Typeset in Goudy. Printed in China. Visit LexisNexis Butterworths at www.lexisnexis.com.au Preface My interest in the law of confidentiality was piqued through exposure from teaching and writing in the field of equity and trusts. It saw a further development of interest under the guise of lawyer-client confidentiality, again as a result of teaching and writing in that field. But it was evident to me, even at that time, that the law of confidentiality deserves more than a chapter in a text on equity,1 or one on professional responsibility,2 and indeed is hardly confined to the parameters of equity and lawyer-client (or professional) relationships. Hence the genesis of this book. It is not entirely alone in the Australian legal landscape. Back in 1990 Robert Dean published his The Law of Trade Secrets, which entered into its second edition in 2002,3 and a decade later translated into loose-leaf format and expanded its scope to include privacy in its title.4 Those with a broader interest in confidentiality were otherwise forced to resort to one of several English works in the field. The most compendious of these, the second edition of Gurry on Breach of Confidence,5 published in 2012, takes its name from the author (an Australian) of what was in many ways a seminal book in the area (particularly from an equity perspective).6 Its authors nonetheless started with a clean slate, such that there is little apart from the name that associates the two ‘editions’. English readers have also been blessed with more succinct treatments of the law of confidentiality, namely Paul Stanley’s 2008 The Law of Confidentiality: A Restatement,7 and a book, simply entitled Confidentiality, entering its third edition in 2012, authored by (now) Lord Toulson and Charles Phipps.8 While bringing an Australian perspective to the law of confidentiality, this work does not shirk from legal developments in other common law jurisdictions. It makes, to this end, frequent reference to judicial, statutory and academic contributions from the United States, England, New Zealand and Canada, as well as occasional reference to case law from Scotland, Ireland, Hong Kong, Malaysia and Singapore. The United States, in particular, has witnessed a sophisticated development of the law of trade secrets, with empirical evidence revealing that litigation over trade secrets is growing exponentially.9 It could, therefore, hardly be overlooked in an effort to present a balanced (common law) perspective on confidentiality. I would like to extend thanks to Professor Danuta Mendelson, from Deakin University, for supplying me the final draft copy of the chapter she co- authored with Professor Anne Rees in Health Law in Australia10 titled ‘Medical Confidentiality and Patient Privacy’. I also wish to thank Hayley Moore from LexisNexis for commissioning and managing the project, and Felicia Gardner for her excellent editorial and proofreading work. As always, the staff of the University of Tasmania Law Library very much deserve credit for their untiring assistance in securing access to relevant material. The law in this work is stated to material available to me as at 1 September 2014. G E Dal Pont Hobart ______________________________ 1. See G E Dal Pont, Equity and Trusts in Australia, 6th ed, Lawbook Co, Australia, 2015, Ch 6. 2. See G E Dal Pont, Lawyers’ Professional Responsibility, 5th ed, Lawbook Co, Australia, 2013, Ch 10. 3. R Dean, The Law of Trade Secrets and Personal Secrets, 2nd ed, Lawbook Co, Australia, 2002. 4. R Dean and G Hughes, Trade Secrets and Privacy, Lawbook Co, Loose-leaf, Australia, 2012–. 5. T Aplin, L Bently, P Johnson and S Malynicz, Gurry on Breach of Confidence, 2nd ed, OUP, Oxford, 2012. 6. F Gurry, Breach of Confidence, Clarendon Press, Oxford, 1984. 7. P Stanley, The Law of Confidentiality: A Restatement, Hart Publishing, Oxford and Portland, 2008. 8. R G Toulson and C M Phipps, Confidentiality, 3rd ed, Sweet & Maxwell, London, 2012. 9. See D S Almeling, D W Snyder, M Sapoznikow, W E McCollum and J Weader, ‘A Statistical Analysis of Trade Secret Litigation in Federal Courts’ (2010) 45 Gonzaga L Rev 291; D S Almeling, D W Snyder, M Sapoznikow, W E McCollum and J Weader, ‘A Statistical Analysis of Trade Secret Litigation in State Courts’ (2010) 46 Gonzaga L Rev 57. 10. B White, F McDonald and L Willmot (eds), Health Law in Australia, 2nd ed, Lawbook Co, Sydney, 2014, ch 9. Table of Cases References are to paragraphs A A v B plc [2003] QB 195; [2002] EWCA Civ 337 .… 6.5, 6.8, 6.9 —v Hayden (1984) 156 CLR 532; BC8400488 .… 1.35, 11.24 —v Law Society of Tasmania (2001) 10 Tas R 152; [2001] TASSC 55; BC200102335 .… 15.36 A Health Authority v X [2001] Lloyd’s Rep Med 349 .… 9.27, 12.11 (A Healthcare Worker) v Associated Newspapers Ltd [2002] EMLR 23; [2002] EWCA Civ 195 .… 6.11 A Local Authority v W [2006] 1 FLR 1; [2005] EWHC 1564 .… 13.30 AA v BB (2013) 296 ALR 353; [2013] VSC 120; BC201301229 .… 20.14 Aas v Benham [1891] 2 Ch 244 .… 3.10 AB v CD [1851] SC 177 .… 9.3, 12.9, 13.3, 18.9 —v—[1904] SC 72 .… 9.27 AB Consolidated Ltd v Europe Strength Food Co [1978] 2 NZLR 515 .… 1.47, 2.17, 3.30, 5.27 Abbey v Gilligan [2013] EMLR 12; [2012] EWHC 3217 .… 4.9, 11.36 ABC v D1 [2007] VSC 480; BC200710447 .… 20.14 ABC-1 v Ring [2014] VSC 5; BC201400106 .… 20.14 Abernethy v Hutchinson (1825) 1 H & Tw 28; 47 ER 1313 .… 14.1 Abondio v Women’s and Children’s Healthcare Network [2000] VSC 51; BC200000811 .… 18.39 Abrahams v Biggs [2011] FCA 1475; BC201109853 .… 5.12 Ackerman v Kimball International Inc (1995) 652 NE 2d 507 .… 15.26 Acroyds (London) Ltd v Islington Plastics Ltd [1962] RPC 97 .… 10.3 Actew Corporation Ltd v Mihaljevic [2007] ACTSC 39; BC200704765 .… 18.19 Addis v Gramophone Co Ltd [1909] AC 488 .… 16.25 Addstone Pty Ltd (in liq), Re (1998) 30 ACSR 156; BC9807010 .… 17.12 Admar Computers Pty Ltd v Ezy Systems Pty Ltd (1997) 38 IPR 659 .… 3.33 Aegis Defence Services Ltd v Stoner [2006] EWHC 1515 .… 10.15 AG Australia Holdings Ltd v Burton (2002) 58 IPR 327; [2002] NSWSC 454; BC200202675 .… 15.49 —v—(2002) 58 NSWLR 464; [2002] NSWSC 170; BC200202299 .… 9.24, 11.23, 11.24, 11.25, 11.32, 14.26, 15.36 AIM Maintenance Ltd v Brunt (2004) 28 WAR 357; [2004] WASC 49; BC200401330 .… 5.19 Ainsworth v Hanrahan (1991) 25 NSWLR 155 .… 17.12, 17.20 Aird v Prime Meridian Ltd [2007] BLR 105; [2006] EWCA Civ 1866 .… 19.4 Alcan (NT) Alumina Pty Ltd v Commissioner of Taxes (2007) 67 ATR 82; [2007] NTSC 39; BC200705799 .… 1.34, 20.12 Alfa Laval Cheese Systems Ltd v Wincanton Engineering Ltd [1990] FSR 583 .… 5.26 Alfred Crompton Amusement Machines Ltd v Customs and Excise Commissioners (No 2) [1974] AC 405 .… 18.1, 18.78 Ali Arc Industries LP v S & v Manufacturing Ltd (2011) 265 Man R (2d) 1; [2011] MBQB 95 .… 5.42 Ali Shipping Corporation v Shipyard Trogir [1998] 2 All ER 136 .… 19.7, 19.10, 19.14 Allcard v Skinner (1887) 36 Ch D 145 .… 2.3 Allen Allen & Hemsley v Deputy Commissioner of Taxation (1989) 20 FCR 576 .… 18.19 Alliance v Australian Gas Light Co (1983) 34 SASR 215 .… 19.6 Allstate Life Insurance Co v Australia and New Zealand Banking Group Ltd (1995) 57 FCR 360; BC9507524 .… 17.4 Altavion Inc v Konica Minolta Systems Laboratory Inc (2014) 226 Cal App 4th 26 .… 5.11, 5.34 Alterskye v Scott [1948] 1 All ER 469 .… 17.4 Amber Size and Chemical Co Ltd v Menzel [1913] 2 Ch 239 .… 5.57 American Cyanamid Co v Ethicon Ltd [1975] AC 396 .… 15.4 AMI Australia Holdings Pty Ltd v Fairfax Media Publications Pty Ltd [2009] NSWSC 1290; BC200910603 .… 20.8, 20.10 —v— (2011) Aust Torts Reports ¶82-077; [2010] NSWSC 1395; BC201010355 .… 11.29, 14.5 AMM v HXW [2010] EWHC 2457 .… 6.16 Ammon v Consolidated Minerals Ltd (No 3) [2007] WASC 232; BC200711935 .… 13.21 AMP Inc v Fleischhacker (1987) 823 F 2d 1199 .… II.13, 5.31, 5.51 Ampolex Ltd v Perpetual Trustee Co (Canberra) Ltd (1995) 18 ACSR 218; BC9505354 .… 17.20 Amway Corporation v Eurway International Ltd [1974] RPC 82 .… 5.30, 13.18 Analogic Corporation v Data Translation Inc (1976) 371 Mass 643 .… 15.8 Andrews Advertising Pty Ltd v Andrews [2014] NSWSC 318; BC201402069 .… 5.41 Andritz Sprout-Bauer Australia Pty Ltd v Rowland Engineering Sales Pty Ltd (1993) 28 IPR 29; BC9305103 .… 14.15 ANI Corporation Ltd v Celtite Australia Pty Ltd (1990) 19 IPR 506 .… 10.6 Ansell Rubber Co Pty Ltd v Allied Rubber Industries Pty Ltd [1967] VR 37 . … 5.2, 5.16, 5.17, 5.32, 15.49 Anton Piller KG v Manufacturing Processes Ltd [1976] 1 Ch 55 .… 15.20 ANZ Bank New Zealand Ltd v Blum Global Prestige Brands Ltd [2014] NZHC 640 .… 11.35 AO Smith Corporation v Petroleum Iron Works Co of Ohio (1934) 73 F 2d 531 .… 5.23 Apotex Fermentation Inc v Novopharm Ltd (1998) 162 DLR (4th) 111 .… 16.17 Aquaculture Corporation v NZ Green Mussel Co Ltd [1990] 3 NZLR 299 . … 16.21 —v— (1985) 5 IPR 353 .… 3.30, 5.9, 5.27, 8.20, 10.8, 10.9, 11.16, 15.8, 15.9 Archer v Williams [2003] EMLR 38; [2003] EWHC 1670 .… 2.26, 6.8, 13.22, 16.3 Arklow Investments Ltd v MacLean [2000] 1 WLR 594 .… 2.16, 2.17, 5.45, III.6 Arthur Murray Dance Studios of Cleveland Inc v Witter (1952) 105 NE 2d 685 .… 5.13 Asahi Holdings (Australia) Pty Ltd v Pacific Equity Partners Pty Ltd (No 2) [2014] FCA 481 .… 18.12, 18.16, 18.17 Ashby v Commonwealth of Australia (No 2) (2012) 203 FCR 440; [2012] FCA 766; BC201205209 .… 18.74 Ashcoast Pty Ltd v Whillans [2000] 2 Qd R 1 .… 5.57, 5.62 Ashmore v Douglas-Home [1987] FSR 553 .… 5.11, 13.21 Ashworth Hospital Authority v MGN Ltd [2002] 4 All ER 193; [2002] UKHL 29 .… 9.6, 9.27, 18.62, 18.70 Asia Business Forum Pte Ltd v Long Ai Sin [2003] 4 SLR(R) 658.... 5.5 Asia Pacific Telecommunications Ltd v Optus Networks Pty Ltd [2005] NSWSC 550; BC200504204 .… 15.36

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