Employee’s position had implied terms requiring action solely in employer’s interest

In a recent judgment handed down by the Hong Kong High Court (Green Light Multiplex Co Ltd v. Lam Shi Yan [2024] HKCFI 2101), the court awarded substantial damages to an employer which sued its former employee and general manager for breach of fiduciary duties in diverting business opportunities away from the company and interfering with the company's business relationships with its customers.

The defendant, Mr Lam, was employed by the plaintiff, Green Light Multiplex Co Limited, as a General Manager between 2010 and 2014. According to Lam, he had some 30 years of experience in the lighting field and was persuaded by the founder of Green Light, Mr Lai, to join the company to build up its sales and project management team. Through his efforts, the company secured various business opportunities including signing an exclusive distributor agreement with Abacus, a major manufacturer and supplier of lighting columns and high masts in Hong Kong and Macau.

The relationship between Lam and Lai broke down in or around 2014, with Lam accusing Lai of stripping him of his powers and responsibilities and excluding him from management affairs. He decided to resign and, unsurprisingly, ended up working with a competitor of Green Light, Pinetum. In fact, Lam was caught handing out business cards describing himself as the General Manager of Pinetum while he was still in employment with Green Light, a fact...

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