Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No [2014] NZERA Christchurch 84
Hearing date 27 May 2014
Determination date 09 June 2014
Member D Appleton
Representation S Peart, A Irvine ; P de Wattignar
Location Dunedin
Parties Propertyscouts Ltd v Timmins
Summary JURISDICTION - Whether Authority had jurisdiction to determine whether restraint in settlement agreement reasonable - COMPLIANCE ORDER - RESTRAINT OF TRADE - Applicant sought compliance with restraint of trade provisions set out in parties' employment agreement and settlement agreement - Whether respondent's new company in breach of restraint - Applicant claimed employment and settlement to be separately complied with - Property manager
Abstract AUTHORITY FOUND -;JURISDICTION: Common law position restraint of trade had to be reasonable to be enforceable but legislation clear that once mediator signed settlement terms binding on parties. No jurisdiction.;COMPLIANCE ORDER - RESTRAINT OF TRADE: Two companies served fundamentally different markets. Different clientele. New company did not conduct property management but provided letting service. New consideration given for settlement agreement and intention provision in employment agreement ceased to take effect. No breach of restraint of trade.
Result Application dismissed; Costs reserved
Main Category Restraint of Trade
Statutes ERA s143(3);ERA s149;ERA s149(2);ERA s151;Income Tax Act 2007 sCE9
Cases Cited South Tranz Ltd v Strait Freight Ltd [2007] ERNZ 704;Transpacific Industries Group (NZ) Ltd v Harris [2013] NZEmpC 97;Young v Board of Trustees of Aorere College [2013] NZEmpC 111
Number of Pages 13
PDF File Link: 2014_NZERA_Christchurch_84.pdf [pdf 254 KB]