Former UCFX Ltd employees: James Terry, Brent Colbert and Scott Maynard, were ordered to pay $681,200 damages for conspiracy after attempting to transfer UCFX staff, clients and business opportunities across to their own new venture. They left UCFX in 2015, just after the company received recognition as Microsoft Partner of the Year.
UCFX Ltd got off the ground in 2013, specialising in software technology. Driving force was entrepreneur Kevin Plumpton. James Terry took on the role of chief operating officer, unpaid; Brent Colbert was employed to bring in customers; Scott Maynard for his software design expertise. The High Court was told cracks were appearing by early 2015: promises of increased remuneration after the early start-up period had not eventuated; Mr Plumpton’s management style was seen as non-collaborative leading to a toxic work environment; there were concerns UCFX in Australia was getting priority over New Zealand operations.
Evidence was given of confidential company information leaked to a bank and potential investors with an inference that a new company was to be carved out of UCFX. Existing UCFX employees were told their company was on the rocks, about to close down; described as an attempt to have them shift across to a proposed new company controlled by Terry, Colbert and Maynard. Justice van Bohemen ruled the three conspired to appropriate UCFX staff, clients and business opportunities. All three conspirators were in breach of duties to keep UCFX information confidential. Breaching obligations of confidence in discussions with third parties while making false and malicious statements to UCFX employees amounted to an unlawful conspiracy.
Damages were calculated as $307,000 for the net cost of bringing in staff from Australia to stabilise the business together with $374,200 for business opportunities lost whilst re-establishing New Zealand operations.
Plumpton v. Terry – High Court (19.12 19)
20.019