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Owner of The Local Guys Services

Jarrad Goulding

#thelocalguys #testcorp #servicesorp

A BRIEF OF THE CONTRIBUTING FACTORS LEADING
TO AN COURT CASE AGAINST

JARRAD GOULDING

TESTCORP PTY LTD/TESTCORP

SERVICECORP PTY LTD/SERVICECORP

  • Jarrad Goulding was employed by the company from 10/3/2012 until 7/8/2012 as a client manager.
  • At that time the company's primary services included test and tag, emergency point testing, microwave testing, RCD testing and thermal imaging and some electrical repair work.
  • Jarrad Goulding's primary tasks involved maintaining existing client contracts, upselling those contracts and approaching and winning new clients.
  • He was a junior.
  • Jarrad Goulding had no industry experience, he knew nothing of the test and tag business, he knew nothing of developing relationships in the associated B2B industry and knew nothing of franchising.
Employee working
Business handshake
  • Jarrad Goulding was trained by company's team members in each aspect of his role and he was provided unfettered access to all such relevant files, data and supporting information as was the case for all client managers.
  • Within days of being employed by Employer, Jarrad Goulding began the setup of a competitor company called TestCorp. He did so relying on his good friend Luke Stephen who was unknown to the company. Jarrad Goulding structured the relationship such that Luke was the face of TestCorp enabling Jarrad to remain invisible. TestCorp was incorporated on 14 May 2012.

On 2 April 2012

Jarrad registered the domain name "testcorp.com.au" in his own name.

On 3 May 2012

Jarrad made it public knowledge that he owned the brand Testcorp.

On 3 May 2012

Jarrad paid for his identity as the owner of the domain "testcorp" to be hidden on the internet domain information service "WHOIS".

At all times Jarrad presented himself as a diligent and loyal member of the company's team.

  • Client information was readily available to Jarrad Goulding whilst employed. He accessed the company database and recorded details of clients and their contracts on Post-it Notes ("Client Data").
  • Client Data available from the database included details such as decision makers, contract details, site numbers, site addresses, phone numbers, emails, quantities of equipment, charge rates and most importantly dates when sites fall due for their servicing.
  • A range of client specific information was recorded on the 239 Post-it Notes that were presented to court. A number of the Post-it Notes had errors in either names or phone numbers or similar. These same errors existing in the company's database from which the information was copied.
Post-it notes

THE TRUE EXTENT OF THE NUMBER OF POST-IT NOTES WITH DETAILS OF EMPLOYER'S CLIENTS IS UNKNOWN.

Person typing on keyboard
  • Whilst employed, Jarrad collected and recorded company's secrets. He copied various procedures and forms and records that took years to develop and refine ("The System"). The extent of Jarrad's collection of company's secrets is unknown.
  • Knowledge of the Client Data and the System allowed quotes and proposals to be sent to clients just as their next service was due. How very convenient, particularly when the quote was at a reduced cost.

The company commenced servicing UnitingCare Wesley in 2004. With October 2012 being the next service period for the 42 sites Jarrad quoted Uniting Care Wesley on 6 August 2012, the second to last day of his employment.

TestCorp invoiced UnitingCare Wesley $27,871.60 (excluding GST) in its first year.

By 31.10.2012 TestCorp was registered with The Government of Western Australia Department of Finance as a supplier and commenced servicing various Western Australian sites for the Department of Finance in November 2012.

The number of cases similar to UnitingCare Wesley or The Government of Western Australia Department of Finance is unknown.

  • Whilst employed and for some years afterwards Jarrad through TestCorp used Client Data and the the System to grow the TestCorp business.
  • In December 2012 Jarrad became a director and equal shareholder with Luke in August 2013.
  • On 19 March 2015 after less that 3 years in business, Jarrad sold his 50% share of TestCorp to his business partner Luke for the sum of $243,496. Luke was trusting of the transction and also of the non-solicitation restraint agreed by Jarrad.
Person holding 'LIE' sign
Frustrated man
  • Jarrad immediately established a competitor electrical test and tag business called ServiceCorp. It was set up specifically as a competitor company to TestCorp and his unsuspecting ex business partner Luke. ServiceCorp as a business was established in March 2015.
  • Jarrad continued to use Client Data and the System in ServiceCorp and converted TestCorp clients into ServiceCorp clients.
  • The TestCorp business was evaporating as TestCorp clients were being converted to ServiceCorp. TestCorp ceased to operate soon after.
  • Using the Client Data and the System, Jarrad possessed qualified clients, the knowhow and the service standards required to win contracts and to maintain contracts. Jarrad had at hand, 'a ready made-business,' a turn-key operation.
  • Jarrad approached Company clients and coverted them into TestCorp clients and then converted TestCorp clients into ServiceCorp clients.
Masked person with laptop

Jarrad Goulding freely took company secrets from his employer, rebranded those secrets, firstly with a TestCorp logo and then a ServiceCorp logo and

Gavel

Judgement was enterred in December 2022.

The company won in the 2 areas of judgement, liability and damages.

The court case exposed Jarrad Goulding, his behaviour, his conduct and his strategy.

Jarrad's employer was successful in its claim against him and won the court case.

Jarrad Goulding lost the court case.

About Jarrad Goulding Truth

Judgement was entered in December 2022.

Jarrad's employer won in the 2 areas of judgement, liability and damages.