| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Wellington |
| Reference No | [2014] NZERA Wellington 116 |
| Hearing date | 12 Nov 2014 |
| Determination date | 14 November 2014 |
| Member | P R Stapp |
| Representation | J Steele ; D Smith, M O'Brien |
| Location | Wellington |
| Parties | Just Plants Ltd v Smith and Anor |
| Other Parties | Rentokil Initial Ltd |
| Summary | PRACTICE AND PROCEDURE – Identity of employer – RESTRAINT OF TRADE – BREACH OF CONTRACT – INJUNCTION – Applicant sought damages for first respondent’s breach of restraint of trade provision (“ROT”) in employment agreement – Applicant sought injunction preventing first respondent from working for second respondent – First respondent’s position at applicant made redundant – Sales person |
| Abstract | AUTHORITY FOUND –;PRACTICE AND PROCEDURE: Name of employer and address of business in employment agreement mistakes. First respondent employed by applicant.;RESTRAINT OF TRADE – BREACH OF CONTRACT – INJUNCTION: Consideration provided for ROT. No evidence indicating that applicant’s proprietary interest anything more than first respondent gaining knowledge and skills. No geographic scope provided in restraint. Not reasonable for such restraint to apply to sales person where change of ownership in business since ROT signed and first respondent made redundant by applicant. Not appropriate to modify restraint where nothing agreed as to geographic scope. Six months’ duration of restraint at far end of reasonable time. ROT unenforceable and not reasonable. Confidentiality provisions of employment agreement provided adequate protection to applicant. No breach of contract. Application for injunctive relief declined. |
| Result | Application granted (practice and procedure) ; Applications dismissed (restraint of trade)(breach of contract)(injunction) ; Costs reserved |
| Main Category | Restraint of Trade |
| Cases Cited | Airgas Compressor Specialists Ltd v Bryant [1998] 2 ERNZ 42;Brown v Brown [1980] 1 NZLR 484;Gallagher Group Ltd v Walley [1999] 1 ERNZ 490;Fuel Espresso Ltd v Hsieh [2007] ERNZ 60 ; [2007] 2 NZLR 651;Ryan v Mason (2012) 10 NZELR 174;Transpacific Industries Group (NZ) Ltd v Harris [2013] ERNZ 267;Warmington v AFFCO New Zealand Ltd [2012] ERNZ 1 |
| Number of Pages | 13 |
| PDF File Link: | 2014_NZERA_Wellington_116.pdf [pdf 199 KB] |