| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 53/01 |
| Determination date | 24 May 2001 |
| Member | D King |
| Representation | A Drake ; P Swarbrick |
| Location | Auckland |
| Parties | Parkin v GD Rutter Ltd |
| Summary | UNJUSTIFIED DISMISSAL - Conflict of interest - Breach of contract - Notified of sale of part of business and possible redundancies - Applicant made offer to purchase - Decision made to keep business - Involved in purchase of new machinery for respondent as well as for personal use - Purchased machine for self that respondent was going to buy - Failed to tell respondent of purchase - Confronted after finance company rang respondent about insurance for machinery - Dismissed due to conflict of interest and breach of contract - Whether direct competition with respondent - Whether prohibition on competition encompassed potential competition - Setting up business" was reference to actual formation rather than preparation - Conclusion that applicant intended to act in competition not fairly reached - No real opportunity to respond to allegations - Reinstatement sought but not practicable - No attempt to mitigate loss - Duty to disclose competing interest in machine - Contributory conduct 50 percent - Moulding room manager" |
| Result | Application granted ; Compensation for humiliation etc ($3,000 reduced to $1,500) ; Costs reserved |
| Cases Cited | Kanda v Government of Malaysia (PC) [1962] AC 322;Space Industries (1979) Ltd v McKavanagh [2000] 1 ERNZ 490;Schilling v Kidd Garrett Ltd [1977] 1 NZLR 243 |
| Number of Pages | 8 |
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