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Litigation Update: When can direct claims for loss be brought by shareholders, and when can a plaintiff claim travel beyond the pleaded claim?  Garner v Central Innovation Pty Limited [2022] FCAFC 64

The Full Court of the Federal Court recently handed down its decision in Garner v Central Innovation Pty Limited [2022] FCAFC 64, a case about misuse of confidential information.  In its decision, the Court made numerous important observations concerning how claims should be advanced, and how litigation should be pursued.

This article will focus on what the Court stated in respect of:

  • Whether a Plaintiff ought to be confined expressly to the matters it has pleaded, or whether it can advance claims outside of the pleadings where notice is provided to the Defendant; and
  • The circumstances under which a claim for loss can be brought by shareholders of a company, and/or whether the company should bring it.

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