Court bars ex-WIPL duo

Former directors of the West Indies Petroleum Limited (WIPL) Courtney Wilkinson and John Levy, along with his wife, Donna, have been barred by the Supreme Court from using or misusing confidential information in relation to the contracts, suppliers, and employees of Island Lubes Distributors Limited.

Both Wilkinson and Levy, up to February, served as directors of WIPL, the parent company for Island Lubes, while Levy, up to March, was a director of Island Lubes.

Both directors were removed from their positions at WIPL following allegations of unauthorised access to the electronic communication of two of WIPL's current board directors.

However, following their removal from the WIPL's board, Levy and Wilkinson established and became directors of two new companies.

These are Ecomarine Energy Limited and Eco Petroleum Limited, which reportedly sought to compete with WIPL and Island Lubes in petroleum distribution and the supply of lubricants and other essentials across the island.

Consequently, the first claimant, Island Lubes, and WIPL, the second claimant, both filed an application against Wilkinson, Levy and his wife, who was company secretary at Island Lubes; the Levys' company Sprint Fuels and Lubricants Limited, as well as the ex-directors' two newly formed businesses, seeking a number of reliefs, including freezing order, a search order, or in the alternative, a preservation order and an interim injunction, which was the remedy provided by the court.

The claimants' application was sought on the basis that the defendants had breached their fiduciary duty and confidence and had wrongfully interfered with the contractual relations of Island Lubes.

Therefore, the Supreme Court, in granting the injunction, formally restrains the Levys and Wilkinson from attempting to unfairly disrupt Island Lubes' operations and customer base or otherwise exploit privileged information to which they are privy.

The injunction also restrains the trio's servants and/or agents from inducing or procuring breaches by unlawfully interfering in contracts between Island Lubes and its employees, contractors, suppliers, and other business relationships.

Additionally, the Levys were also prohibited from breaching their fiduciary duties to Island Lubes and from conflicts of interest by engaging on their own account or in conjunction with others, whether directly or indirectly, in establishing, developing, carrying on or assisting in carrying on, be engaged, concerned, interested or employed in or provide technical, commercial or professional advice to any other business engaged in supplying goods and services competitively with the marketing, warehousing, and distribution of lubricants.

Both claimants had argued that Levy and Wilkinson acted in bad faith and in breach of confidence by using privileged information to unfairly disrupt Island Lubes and WIPL's clientele.

Levy's attorneys, however, denied that their client had abused his position to secure any personal benefits or to compete with the claimants or to solicit competitive business.

Wilkinson's attorney also denied that he and the co-defendants interfered with and/or terminated the contractual relations of Island Lubes by enticing former employees of the claimants to join Ecomarine.

Meanwhile, the court said it ruled in favour of Island Lubes because, “on balance, the claim made by Island Lubes is stronger than that of the defendants”.

The injunction is to remain in effect until the substantive dispute between the parties goes to trial.

The Supreme Court had also ordered that the claimant, Island Lubes, fortify its undertaking as to damages in the sum of US$150,000 until the trial of the substantive issues are concluded.

Last month, Levy and Wilkinson suffered a major blow when Justice David Batts tossed out a lawsuit they had filed in the Supreme Court accusing the leadership of WIPL of acting in a manner that was prejudicial to their interest.

Attorneys-at-law Georgia Gibson Henlin, QC, Stephanie Williams, and Peta-Shea Dawkins represented the claimants.

Attorneys-at-law Nigel Jones and Kashina Moore represented the Levys and their company.

Ecomarine Energy Company Limited and ECO Petroleum Limited are represented by attorneys-at-law Symone Mayhew, QC, and Ashley Mair, respectively.

tanesha.mundle@gleanerjm.com