| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2013] NZERA Auckland 521 |
| Hearing date | 30 Oct 2013 |
| Determination date | 14 November 2013 |
| Member | R Larmer |
| Representation | R Harrison ; S Wilson, A Sinclair |
| Location | Auckland |
| Parties | Rekkie v Blackfoot New Zealand Ltd |
| Summary | RESTRAINT OF TRADE – Applicant sought declaration restraint of trade provision in parties' employment agreement void and unenforceable - Respondent sought declaration applicant could not work for or solicit identified clients - Applicant accepted if restraint enforceable not able to work for clients but disputed restraint meant applicant could not solicit clients - Media manager |
| Abstract | AUTHORITY FOUND –;RESTRAINT OF TRADE: On balance of probabilities applicant did not retain genuinely confidential information but applicant worked closely with clients and likely had ability to influence clients. Applicant in strong position to harm respondent as result of unfair competition. Legitimate proprietary interest which respondent may protect. Not case of unfair bargaining. Reasonable for parties to enter into restraint. Restraint limited to protecting proprietary interest. 12 month restraint too long. Restraint unreasonable and unenforceable. Parties directed to mediation to resolve problems arising from unreasonable duration of restraint. |
| Result | Application granted ; Costs reserved |
| Main Category | Restraint of Trade |
| Statutes | ERA s162 – ERA s164 - Illegal Contracts Act 1970 |
| Cases Cited | Airgas Compressor Specialists Ltd v Bryant [1998] 2 ERNZ 42;Credit Consultants Debt Services NZ Ltd v Wilson (No 3) [2007] 1 ERNZ 252;Faccenda Chicken Ltd v Fowler [1985] 1 All ER 724;Fuel Espresso Limited v Hsieh [2007] NZCA 58;Gallagher Group Ltd v Walley [1999] 1 ERNZ 490;Hally Labels Ltd v Powell [2011] ERNZ 233;James & Wells Patent and Trade Mark Attorneys v Snoep [2009] ERNZ 284;Littlewoods Organisation Ltd v Harris [1978] 1 All ER 1026;Marine Helicopters Limited v Stevenson [1996] 1 ERNZ 472;Pottinger v Kelly Services (New Zealand) Ltd [2012] NZEmpC 101;Transpacific Industries Group (NZ) Ltd v Harris [2013] NZEmpC 97;Warmington v Affco New Zealand Ltd [2012] NZEMPC 19 |
| Number of Pages | 15 |
| PDF File Link: | 2013_NZERA_Auckland_521.pdf [pdf 257 KB] |