THE HIGH Court has been told that three former senior executives with Goodbody Stockbrokers will not disclose confidential information obtained by them in their old jobs to their new employer, investment managers Tilman Brewin Dolphin Ltd.
Tom Mallon, for former Goodbody portfolio managers Richard Flood and Daniel Macauley and pensions manager Suzanne Cashin, who joined Tilman in August, said they were prepared to give undertakings to the court until a further sitting on September 19th.
Tilman gave undertakings that it would not in the meantime seek to induce its new employees to divulge any confidential information they may have or use it in any way.
Mr Justice Barry White heard that Tilman paid €700,000 in “hello money” to the three Goodbody executives to induce them to leave their employer last July.
Goodbody director Eamonn Glancy, in an affidavit, claimed that when a former member of the firm, Denman Kessler, joined Tilman in 2010, he solicited a number of key Goodbody clients to transfer business worth €74 million to his new employer.
Mr Glancy said that at a meeting in January 2011 with Ray Tilson of Tilman, the firm undertook not solicit any more Goodbody staff.
Mr Tilson denied that his firm agreed to this and said the January 2011 meeting was held to discuss Goodbody’s takeover by Fexco.
Mr Glancy told the court the three former employees had downloaded and taken with them confidential and commercially sensitive information.
The three individuals, Tilman and its parent, Brewin Dolphin, all deny the allegations.
Mr Glancy said Goodbody had discovered serious breaches by Mr Flood of contractual obligations on confidentiality and believed the information procured would be used by all three former employees to the advantage of Tilman.
He said the information allegedly downloaded by Mr Flood related to hundreds of Goodbody clients including names, addresses and phone numbers.
He alleged the confidential data related to portfolios managed by five senior managers as well as Mr Flood.
Tilman, in separate parallel proceedings, is seeking to prohibit Goodbody from terminating a financial services agreement Tilman has had with Goodbody since 2010. Goodbody threatened to end the business link on August 15th.
Tilman claims it would be unable to manage its clients’ portfolios if Goodbody was allowed to do so before it could find a replacement, causing it irreparable damage.
Mr Justice White will decide on Monday whether to grant Tilman prohibitive injunctions against Goodbody on the question of Goodbody withdrawing its business services agreement with Tilman.
