Norbrook Laboratories Limited v Bomac Laboratories Limited

Privy Council (Lords Bingham of Cornhill, Lord Hope of Craighead, Lord Carswell, Lord Mance, Sir Martin Nourse), 4 May 2006

In a decision delivered on 4 May 2006, the Privy Council has overturned the Court of Appeal decision in a long running confidential information case.

Norbrook Laboratories Limited had provided Bomac with an extensive dossier, some of it confidential, about a veterinary pharmaceutical product, Bovaclox DC Xtra.  This was used as an antibiotic for dry cows.  A confidentiality agreement was entered into between the parties.   After their relationship came to an end, Bomac began to investigate how it might continue to sell its dry cow product.  It sought products from another supplier, Rosenbusch, that were chemically equivalent.  The key issue in the case was whether, in dealing with this alternative supplier of the key ingredients, Bomac’s CEO had revealed Norbrook’s confidential formulation.

At first instance, Heath J held that Bomac had not broken its secrecy agreement.  This finding was upheld, but for different reasons, by the Court of Appeal. 

The Privy Council disagreed with the Court of Appeal and its conclusions.  It found that Bomac’s CEO had expressly stated in a letter to Rosenbusch the key percentage of the Norbrook formulation.  This was confidential and something that Bomac was bound not to disclose.  The Privy Council found [29] that “the breach of contract [i.e. to keep the information secret] which Norbrook set out to prove has, in the opinion of the Board, been very clearly established”. 

The case has been remitted to the High Court for determination of all issues consequent upon the appeal decision.  For a copy of the judgment, see http://www.bailii.org/uk/cases/UKPC/2006/25.html.