Transfer of confidential information to personal email address
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18.4.2011 In the case of Brandeaux Advisers (UK) Ltd and others v Chadwick, the High Court held that an employee who sent large amounts of her employer's confidential information to her private e-mail address was in repudiatory breach of contract and the employer was therefore entitled to dismiss her without notice. The court doubted that the possibility of litigation with an employer could ever justify an employee transferring or copying confidential documents. Ms Chadwick was employed by Brandeaux Advisers as Head of Research and Business Development, with compliance responsibilities. She took stress-related sick leave and later resigned. Changes to her role were agreed and she withdrew her resignation. Ms Chadwick made an unsuccessful request to have her annual bonus increased and also expressed concern, given her compliance duties, that she had stopped receiving routine information. She started to send large quantities of Group material, all of which was confidential and some of which was highly confidential, to her private e-mail address. Following consultation meetings resulting from advice that her role was at risk of redundancy, Ms Chadwick was given three months' notice of dismissal. At meetings to discuss an exit package the employer considered that Ms Chadwick was making threats to secure more compensation. She was put on garden leave (meaning she was still serving her notice period but was not required to come into work) and her e-mail account was examined, uncovering the transfer of the confidential material. After a disciplinary hearing, Brandeaux Advisers summarily dismissed Ms Chadwick for gross misconduct. Her internal appeal was dismissed. The High Court held that Ms Chadwick's transfer of confidential material to her private e-mail address was a repudiatory breach of contract that justified her summary dismissal. Further, Brandeaux Advisers would not have been prevented, as a result of their own repudiatory breach of contract (failure to provide Ms Chadwick with routine information), from accepting Ms Chadwick's repudiatory breach of contract. As the employer's breach had not been accepted by the employee, the contract was continuing and it was therefore still open to the employer to accept the employee's breach. However, the High Court rejected the employer's claim for damages equating to the salary paid to the employee after the date on which it would have dismissed her had it known of her wrongdoing.
This bulletin is for general guidance purposes only and should not be used for any other purpose.
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