Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No [2013] NZERA Auckland 154
Hearing date 12 Apr 2013
Determination date 30 April 2013
Member A Fitzgibbon
Representation E Butcher, A Evans ; R Harrison
Parties Asiaciti Trust New Zealand Ltd v Harris
Summary RESTRAINT OF TRADE – Applicant sought to enforce non-competition clause preventing respondent from working for competitor - 12 month restraint – No specified geographical area - Restraint not negotiable - Whether restraint valid – Whether respondent told clause likely unenforceable – Whether Authority should modify clause - Assistant trust administrator
Abstract AUTHORITY FOUND –;RESTRAINT OF TRADE: Respondent signed agreement believing restraint to be unenforceable. Respondent not senior employee or otherwise in position of great importance. Restraint too wide, harsh and unreasonable. Restraint unenforceable. Authority should not exercise power to modify restraint. Application dismissed.
Result Application dismissed ; Costs reserved
Main Category Restraint of Trade
Statutes ERA s161 – Illegal Contracts Act 1970 s8
Cases Cited Bates v Gates [1986] 1 NZELC 95,269;Brown v Brown [1980] 1 NZLR 484;Fuel Espresso Limited v Hsieh [2007] ERNZ 60; [2007] 2 NZLR 651;Debtor Management (NZ) Ltd v Quail [1993] 2 ERNZ 498;Ryan v Mason [2012] NZHC 3105
Number of Pages 13
PDF File Link: 2013_NZERA_Auckland_154.pdf [pdf 318 KB]