Software company alleges outgoing employees unlawfully diverted business

A multinational software development company has brought High Court proceedings against several Irish-based outgoing employees whom it alleges have unlawfully diverted its business to a rival firm allegedly set up by them.

Scotland-headquartered Integrated Environmental Solutions Ltd (IES) and related IES R&D Ltd develop specialised software used to help design buildings that are more environmentally friendly.

They have brought proceedings against John Gleeson, Stephen Earle, Darren Jordan, Sean O'Riordan and Building Performance Consulting Engineers (BPCE).

The court heard all four were senior employees at IES’s Irish branch and had, on dates between December and January last, resigned from that company.

IES claims that during the course of their employment, and in breach of their contracts of employment, they diverted business from it to the benefit of BPCE.

The High Court heard IES apprehends the defendants have taken its property, including creating models of IES’s “Virtual Environment” software, which it is alleged they will use for the BPCE’s benefit.

That software is used in the design and construction of energy efficient and sustainable buildings. IES, which has offices in Scotland, India, Singapore, US and Australia as well as in Ireland, sells licences to use its software and also provides consultancy services to clients.

Building simulation tool

IES claims that its Virtual Environmental Software is widely recognised by experts as being the best building simulation tool in the world.

It is claimed the BPCE, with a registered address in Ashbourne Co Meath, was set up by Mr Gleeson, Clontarf Park, Dublin 3 when he was still an employee of IES.

It is claimed Mr Jordan of Rosealier House, Kilnagoran, Co Kildare; Mr Earle of Kilmuckridge, Co Wexford, and Mr O’Riordan, Hanover Quay Dublin 2 were all recruited to join BES.

IES claims that its business has been damaged by the defendants’ actions.

Represented by Marcus Dowling SC, IES seeks various orders against the defendants including injunctions restraining them using IES’s virtual environmental software and requiring them to pay IES any revenues generated and received in respect of any business they solicited for the benefit of BES while employed by IES.

Those orders, if granted, would remain in place pending the outcome of IES’s damages claim against the defendants.

On Friday, Ms Justice Leonie Reynolds granted Mr Dowling permission, on an ex-parte basis, to serve short notice of IES's proceedings on the defendants.

The matter returns before the court next week.