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TRADE SECRET17 August 2026

11,579 files: High Court finds former employees misused a manufacturer's confidential information

A Scunthorpe GRP manufacturer took two ex-employees and their rival company to the High Court after 11,579 files were copied to an external drive during a notice period.

On 17 August 2026 the High Court handed down judgment in EMJ Plastics Limited v Mekina Industries Limited, Baggaley and Johnson [2026] EWHC 2163 (Ch). Recorder Douglas Campbell KC, sitting in the Intellectual Property List, found that a senior operations manager copied 11,579 of his employer's files to an external hard drive during his notice period and used them to build a competing business.

EMJ Plastics has manufactured glass reinforced plastic permanent formwork for bridge and infrastructure projects since 1964. Both individuals had twelve-month non-compete covenants, which had expired before the rival company was set up. The court accepted that preparing to compete was lawful – the line was crossed by taking the employer's material.

The court found breaches of contract and of confidence in copying the files, failing to return them, and then using the material to produce CAD drawings, a calculation sheet and a business plan. Claims also covered copyright infringement, breach of fiduciary duty and unlawful means conspiracy, with the second former employee found jointly liable.

WHAT THIS MEANS FOR COVER

This is a classic pursuit claim: the rights holder is the one going to court, and the spend is legal costs and forensic evidence rather than a damages award against them. Our pursuit section funds that fight up to £1m in year one – and because a claimant controls whether it sues, we write pursuit only alongside a defence policy.

DEFENCE UP TO £5M · PURSUIT UP TO £1M IN YEAR ONE · PURSUIT ONLY WITH DEFENCE

SOURCE: Solicitor News

Summarised for general information only. Nothing here is legal advice or a statement of policy terms – cover is subject to underwriting and the policy wording.