| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2016] NZERA Auckland 198 |
| Hearing date | 26-Feb-16 |
| Determination date | 17 June 2016 |
| Member | Andrew Dallas |
| Representation | M Beech, M Braddock ; W Reid, R Rolston |
| Location | Tauranga |
| Parties | Sunair Aviation Ltd v Walters |
| Summary | BREACH OF CONTRACT – Applicant sought damages for respondent’s breach of employment agreement (“EA”) and duty of fidelity – Fiduciary obligations – Rescue fire service operator |
| Abstract | AUTHORITY FOUND -;BREACH OF CONTRACT: EA prohibited respondent from being involved or employed with any business that could compete with applicant. Respondent breached EA by tendering for contract while still employed by applicant. Respondent’s conduct undermined relationship of trust and confidence. Implied duty of fidelity breached. Respondent not director or shareholder of applicant. No fiduciary obligations owed. Respondent to pay applicant damages, quantum to be determined. |
| Result | Application granted ; Damages (quantum to be determined) ; Costs reserved |
| Main Category | Breach of Contract |
| Statutes | ERA s4A;ERA s174E |
| Cases Cited | Arklow Investments Ltd v Maclean [2000] 2 NZLR 1 (PC);Hally Labels Ltd v Powell [2015] NZEmpC 92;Jerram v Franklin Veterinary Services (1977) Ltd [2001] ERNZ 157;Korbond Industries Ltd v Jenkins [1992] 1 ERNZ 1141 (EmpC);Lloyd v Museum of New Zealand Te Papa Tongarewa [2003] 2 ERNZ 685 (EmpC);Morris v Interchem Agencies Ltd [2003] 1 ERNZ 93 (CA);New Zealand Professional Firefighters Union v New Zealand Fire Service Commission [2011] NZEmpC 149;Nova Energy Ltd v Mitchell [2014] NZERA Auckland 94;Ranson v Customer Systems Plc [2012] EWCA Civ 841;Rooney Earthmoving Ltd v McTague [2012] NZEmpC 63, [2012] ERNZ 273;Schilling v Kidd Garrett Ltd [1977] 1 NZLR 243 (CA);Silver Fern Farms Ltd v New Zealand Meat Workers and Related Trade Unions Inc [2010] NZCA 317, [2010] ERNZ 317;Tisco Ltd v Communication & Energy Workers Union [1993] 2 ERNZ 779;Vector Gas Ltd v Bay of Plenty Energy Ltd [2010] NZSC 5, [2010] 2 NZLR 444 |
| Number of Pages | 12 |
| PDF File Link: | 2016_NZERA_Auckland_198.pdf [pdf 198 KB] |