| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2015] NZERA Auckland 324 |
| Hearing date | 6-Oct-15 |
| Determination date | 16 October 2015 |
| Member | Eleanor Robinson |
| Representation | A Scott-Howman ; R Towner, L Coates |
| Location | Auckland |
| Parties | Lic Automation Ltd v Ruiz |
| Summary | RESTRAINT OF TRADE – Applicant sought interim injunction restraining respondent from commencing new employment with potential competitor (WMS) - Global Sales and Marketing Manager |
| Abstract | AUTHORITY FOUND –;RESTRAINT OF TRADE: Restraint of trade in employment agreement (“EA”) for reasonable period of time and respondent received acceptable financial consideration. Applicant and WMS operate similar technologies and respondent could provide substantial technological benefit to WMS due to position held with applicant. Confidentiality provisions not sufficient to protect applicant’s proprietary interests. Respondent would be in breach of restraint of trade provisions in employment agreement if accepted position with WMS. Risk potentially worth millions of dollars to applicant. Damages not acceptable alternative remedy. Balance of convenience with applicant. Application for injunctive relief granted. |
| Result | Application granted ; Costs reserved |
| Main Category | Restraint of Trade |
| Cases Cited | Allright v Canon New Zealand Ltd (2008) 6 NZELR 367 (EmpC);Fuel Espresso v Hsieh [2007] NZCA 58, [2007] 2 NZLR 651;Gallagher Group Ltd v Walley [1999] 1 ERNZ 490 (CA);Pottinger v Kelly Services (New Zealand) Ltd [2012] NZEmpC 101, [2012] ERNZ 411 |
| Number of Pages | 18 |
| PDF File Link: | 2015_NZERA_Auckland_324.pdf [pdf 225 KB] |