Caymans gag stays on ex-Linklaters lawyer

An injunction has been upheld against a former Linklaters and CliffordChance lawyer

being sued for allegedly misusing confidential information inthe Cayman Islands.The 27

May injunction restrains Ann Nealon, who left the Cayman IslandsStock Exchange (CSX) a

week before as chief executive, from disclosingconfidential information about eight

previous stock exchange clients.Nealon's lawyers' challenge to the ruling failed last

week.Nealon worked at Linklaters until 1993. She qualified as a solicitor atClifford

Chance in 1985, and left in 1986.The two-year-old CSX has 180 listings with a market

capitalisation of$160bn (u100bn). Securities listed on the exchange are traded on

London'sinternational equity market.Chief Justice of the Cayman Islands Anthony Smellie

ordered that the banshould last for a year.The CSX claims Nealon gave confidential

information to her new employers,law firm WS Walker & Co in the Caymans, before and

after she started workthere on 12 July.Cherie Booth QC of 4-5 Gray's Inn Square

represented Nealon, and AngusFoster of WS Walker & Co advised the defendant. Booth has

been replaced byMichael Douglas QC of 4 Pump Court.The CSX is advised by Jeremy McMullen

QC of Old Square Chambers, andAndrew Bolton, a partner at Hunter & Hunter based in the

Caymans.McMullen says: "Nealon has a case to answer. If you take secrets and givethem

to someone else it is breach of contract."Nealon has filed a counter suit against the

CSX for unfair dismissal. Sheclaims the exchange refused to accept her resignation,

sacked her and fileda gagging order.