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Factual Background: Loginradius Inc., a provider of internet-based login and authentication services, was founded by Rakesh Soni in 2012. Deepak Gupta, a former CTO and director of Loginradius, allegedly wrongfully transferred control of the company's domain names, crucial for their operations, to an unknown host after his termination in December 2023. Despite multiple demands, Gupta did not return access to these domains.
Legal Framework: The court used the test for granting an injunction from RJR-MacDonald Inc. v. Canada (Attorney General), which includes:
Legal Arguments/Issues: Loginradius Inc. claimed Gupta breached his contractual obligations, including a Proprietary Information Agreement, and fiduciary duties. They alleged he converted the domain names for personal use, causing potential severe disruption to their business.
Court's Findings: The court determined there was a serious question to be tried, that Loginradius Inc. would suffer irreparable harm without the injunction, and the balance of convenience favored Loginradius. The court deemed the injunction prohibitive, requiring Gupta to refrain from controlling the domain names and to return access to Loginradius.
Conclusion: The court granted an interim interlocutory injunction, restraining Deepak Gupta from interfering with Loginradius's use of the domain names and ordered him to restore access within 48 hours of being served the order. The costs of the application were to be in the cause.
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Plaintiff
Defendant
Court
Supreme Court of British ColumbiaCase Number
S243136Practice Area
Corporate & commercial lawAmount
Not specified/UnspecifiedWinner
PlaintiffTrial Start Date