Jarden Fails in Bid to Force Ex-Executives to Return Cloned Phone Data
Published on 08/26/2026 at 14:27 | Editorial boerse-global.de
Investment firm Jarden has suffered an initial legal setback in its attempt to recover cloned phone data and documents from two former executives who have moved to a competitor. The Employment Court has declined the firm's application for "deliver up" orders against Silvana Schenone and Dan Reynolds, ruling that it lacks jurisdiction to hear the matter.
Judge Kathryn Beck's decision, delivered in late August, means Jarden must refile its claims with the Employment Relations Authority (ERA) instead. The dispute centres on allegations involving cloned work phones and the recruitment of staff by Barrenjoey, where the two executives are reportedly heading.
Jurisdictional Hurdle
Jarden had sought to compel the former executives to hand over specific digital records and physical documents. Judge Beck's ruling represents a procedural setback in what has become a high-stakes poaching dispute, with the court determining that the Employment Court is not the appropriate first venue for such applications in this context.
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Legal observers suggest Jarden is likely to continue its pursuit through the ERA as the firm seeks to protect proprietary information amid the transition of senior leadership to a rival organisation.
Parallel Raiding Allegations in Insurance Sector
The Jarden case comes amid a wave of similar legal actions involving team defections across the professional services industry. On August 25, Willis Towers Watson (WTW) filed a lawsuit against Lockton and 18 former employees, alleging a coordinated "smash and grab" raid on its Northeast construction team.
According to the filings, the 18 staff members resigned within a 44-minute window on August 19. WTW alleges that in the 48 hours following those resignations, 13 clients representing more than $5 million in annual revenue moved their business to Lockton.
Global Trend in Trade Secret Litigation
Several other rulings in late August highlight the ongoing tension between corporate protections and employee mobility:
- Texas Instruments: On August 21, a judge denied Texas Instruments a temporary injunction against a former vice president who took a new role. The court found no evidence that trade secrets had been misused, despite a meeting between the executive and a potential client.
- Medical Imaging Secrets: On August 25, a former Philips engineer, Chih-Yee Jen, was convicted of stealing medical imaging trade secrets to benefit a competitor. The case involved the theft of four specific secrets related to X-ray tube development.
- Maryland Restrictive Covenants: On August 25, the Fourth Circuit affirmed a summary judgment in favour of two employees in a restrictive covenant case. The court found the employers had failed to prove misuse of confidential information and ruled that ambiguous contract language must be construed against the employer.
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ERA Faces Multi-Million Dollar Claims
As Jarden prepares to move its case to the Employment Relations Authority, the agency is also handling a significant new filing from former members of the Gloriavale community. On August 26, a group of 61 individuals filed a claim seeking $40 million in lost wages, entitlements, and exemplary damages.
The claimants allege they were subjected to forced labour and denied basic employment entitlements such as minimum wage, leave, and KiwiSaver contributions. The filing follows previous court rulings in 2022 and 2023 regarding the employment status of community members.
