Former Senior Manager Ordered to Pay $445,686 in Damages
In a landmark High Court battle that lasted six years, a former senior manager, Mr Voon South Shiong, was recently ordered to pay a staggering $445,686 in damages to his previous employer, an international IT firm. The court also ruled that Sunway Digital, the competitor that hired him, must pay an additional $433,742 to Mr Voon’s former employer, 3D Infosystems. This case sheds light on the consequences of breaching employment contracts and conspiring against former employers.
The Legal Battle Unveiled
- Mr Voon and Sunway Digital were found to have conspired against 3D Infosystems.
- Mr Voon breached his employment contract by making unauthorized payments, acting against his former employer, and soliciting former colleagues to join the competitor.
- Justice Chan Seng Onn, a senior judge, awarded nearly $880,000 in damages, marking one of the highest amounts in recent years for employment disputes.
- The court outlined the actions that employees cannot take when joining a competitor.
Case Background
- Mr Voon joined 3D Infosystems in 2007 and held a senior management position.
- He left the company in 2018 and joined Sunway Digital, earning a monthly salary of about $25,700.
- Mr Voon collaborated with businessman Mr Sng Sheau Huei to establish Sunway Digital, causing a dispute over business plans.
- Eight former employees of 3D Infosystems joined Sunway Digital following Mr Voon’s departure.
Legal Proceedings and Rulings
- 3D Infosystems sued Mr Voon and Sunway Digital in 2018, leading to a lengthy legal battle.
- Mr Voon was held liable for various infractions, including fraudulent misrepresentation and breach of confidence.
- Sunway Digital was found guilty of conspiracy and inducing 3D Infosystems’ employees to resign.
- The court determined damages in a unique manner, awarding significant sums to 3D Infosystems.
Breakdown of Damages
- The largest sum of $269,510 was related to a Singapore Power project, where 3D Infosystems lost to Sunway Digital due to disclosed pricing strategy.
- Mr Voon was ordered to pay $185,904 for profiting from confidential information used to benefit Sunway Digital.
- Additional damages were awarded for poaching 3D Infosystems’ employees and other breaches.
In conclusion, this case serves as a cautionary tale for employees considering joining competitors and highlights the legal consequences of such actions. It underscores the importance of upholding employment contracts and maintaining loyalty to former employers to avoid costly legal battles and financial liabilities.