Breach of Confidence:

Question: How do I prove a breach of confidence claim in Ontario when someone misused my confidential business information?

Answer: In Ontario, you typically prove breach of confidence by showing the information had the necessary quality of confidence, it was communicated in circumstances importing an obligation of confidence, and the recipient misused it to your detriment, as outlined by the Supreme Court in Lac Minerals Ltd. v. International Corona Resources Ltd., [1989] 2 S.C.R. 574.  For practical guidance on evidence (like NDA or licensing terms, access logs, and how the misuse occurred), PKM Legal Services can help you assess claim strength and next steps for a business-to-business dispute involving misused recipes, processes, or proprietary software.  Call (519) 410-5250 to book a paralegal consultation in Ontario and protect your confidential information without delay.

Add this website to Google Preferred Sources

Misused Business Secrets

The success of a business may rely heavily upon secret recipes, proprietary software, unique systems, and customized processes; and accordingly, information relating to these key aspects may be highly valued with misuse of such confidential information quite harmful. In tort law, breach of confidence involves the wrongful use of information that was openly shared with the party that subsequently misuses the secretive information; and in this respect, breach of confidence differs from theft of trade secrets which would involve an element of misappropriation.

Note: Please contact PKM Legal Services by phone at: (519) 410-5250 to discuss any specific questions that you may have.

The Law

As per the case of Lac Minerals Ltd. v. International Corona Resources Ltd., [1989] 2 S.C.R. 574, a Supreme Court decision, the elements that must be proven within a breach of confidence case are:

• The information conveyed was confidential;
• The information was communicated in confidence; and
• The information was misused by the party to whom it was communicated.

Specifically, per Lac Minerals Ltd., the Supreme Court said:

As a particularly interesting example case, Cadbury Schweppes Inc. v. FBI Foods Ltd., [1999] 1 S.C.R. 142 involved the licensing of the recipe for Clamato juice by Duffy-Mott (a company later acquired by Cadbury Schweppes Inc.) to Caesar Canning who then contracted production to FBI Foods Ltd.  After Cadbury Schweppes acquired Duffy-Mott, Caesar Canning was notified of termination of the licensing agreement; however, FBI, who later acquired assets of Caesar Canning, made use of the recipe despite a lack of authorization to do so.

Conclusion

Improper use of secretive information may constitute as the tort of breach of confidence where information was confidential, information was communicated within a confidential context, and the information was then misused by the party that received the communication.