Singapore Judge Dismisses Shopee Lawsuit Against Former Employee

In a recent development, a Singapore judge has dismissed a lawsuit filed by Shopee against Lim Teck Yong, a former senior employee who previously held the position of executive director of operations at Shopee Brazil.

The lawsuit was initiated by Shopee after Lim joined ByteDance shortly after leaving his position at Shopee in mid-2023. Shopee alleged that Lim's move to ByteDance violated non-competition and non-solicitation clauses outlined in his employment contracts. The company sought interim injunctions to prevent Lim from joining ByteDance, soliciting Shopee clients and employees, and also requested a springboard injunction to prohibit Lim from joining any Shopee competitor.

However, the Singapore judge has dismissed the lawsuit, indicating that the legal claims made by Shopee against Lim did not merit the granting of the requested injunctions. The decision suggests that the court did not find sufficient grounds to support Shopee's allegations, allowing Lim to proceed with his employment at ByteDance without the imposed restrictions sought by Shopee.

Justice Kwek Mean Luck, presiding over the case, ruled that Shopee failed to demonstrate "a serious question to be tried" regarding the alleged breach of non-competition and non-solicitation restrictions, as well as the springboard injunction.

Regarding the non-competition restriction, Shopee argued that Lim had access to "general know-how" during regional management meetings, which the company deemed confidential. However, Justice Kwek expressed "serious doubts" about the lack of a legitimate proprietary interest and questioned the reasonableness of the geographical restraint. The judge noted that such restraint would potentially exclude Lim from employment in all markets where Shopee operates, which he considered unreasonable.

In terms of the non-solicitation restriction and springboard injunction, Shopee failed to demonstrate that Lim was on the verge of breaching these restrictions or that there was a risk of misuse of information.Ultimately, Justice Kwek's ruling suggested that Shopee did not present sufficient evidence to support the imposition of the requested injunctions, leading to the dismissal of the lawsuit against Lim Teck Yong.

Justice Kwek Mean Luck stated, "I find that Shopee has not shown that it has any prospects of success which, in substance and reality, exist. Its prospects are so small that they lack substance and reality."

Lim Teck Yong had a substantial tenure at Shopee, joining the company in August 2015. Over the years, he held various positions at Shopee's Singapore headquarters, ultimately serving as the executive director of regional operations before relocating to Brazil in January 2021.

As of September 11, 2023, Lim has taken on the role of the leader for TikTok Shop governance and experience in the middle platform team, according to the judgment text. The ruling by Justice Kwek essentially dismisses Shopee's claims and supports Lim's move to ByteDance without the imposed restrictions sought by Shopee.