‘The High Court made significant findings about the copying and use of our documents’
EMJ’s Permadec products have been used on more than 5,000 UK structures and that it has worked with major UK construction companies and engineering consultants.(Image: EMJ Plastics)
A North Lincolnshire manufacturer has welcomed a High Court judge’s order requiring a competitor and former manager to stop using thousands of confidential company documents taken from its systems. We told in September how Scunthorpe -based EMJ Plastic Ltd – which has manufactured specialist glass reinforced plastic products since 1964 – brought proceedings against former operations manager Ian Baggaley and former employee Mark Johnson, who had launched rival firm Mekina Industries Ltd.
The High Court found that Mr Baggaley breached his contract by copying 11,579 company files to use in the new competing business, Mekina Industries Ltd, which has its headquarters in Willerby, Hull. Mekina co-founder Mr Johnson was also found jointly liable for the use of confidential EMJ information.
Now the High Court of Justice of England and Wales has granted a final injunction prohibiting Mekina Industries Limited, former EMJ operations manager Ian Baggaley, and director Mark Johnson from using files taken from EMJ Plastics Limited. The order covers material copied onto a hard drive, as well as EMJ’s confidential “Hot List” of prospective customers, projects, and future business opportunities, along with any documents extracted or derived from those materials.
At the latest hearing, which took place on October 26, the court also ordered the preservation of relevant electronic repositories by independent forensic imaging, to make sure evidence remains available for the next stage of the proceedings. In addition, the court has ordered an inquiry to determine either the losses suffered by EMJ or – at EMJ’s election – the profits made by Mekina as a result of the copying conduct.
Further financial disclosure and case management directions are now set to follow. Mekina has also been ordered to make an interim payment of £385,000 towards EMJ’s costs of proceedings.
Sean Minihane, director of EMJ Plastics, said: “This has never been an action we took lightly. EMJ has spent more than 60 years developing specialist products, technical knowledge, expertise and customer relationships, and we believed it was important to protect what our people and our business had built.
“The High Court made significant findings about the copying and use of our documents. It also rejected key parts of the explanations given by those responsible and found that EMJ’s materials had been used in the development of a competing business. The orders made today ensure that the defendants cannot continue to use material derived from EMJ’s documents and further, provide a framework for determining the financial consequences of that conduct.
“Our customers can be confident that our focus remains on supporting their projects, investing in our people and continuing to deliver the specialist GRP products and solutions they rely upon. Customers do not simply buy a manufactured component. They rely on the technical understanding, experience and specialist knowledge behind it.
“Protecting that expertise is a responsibility we take seriously. While further financial assessment remains to be completed, our priority is firmly on the future and on continuing to develop the products, capabilities and relationships that have defined EMJ for generations.”
Mark Johnson of Mekina Industries said: “We are planning to appeal and the date for this is the 9th November for the application to be filed, no further comment at this stage.”
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