Restrictions Includes non-publication order
Jurisdiction Employment Relations Authority - Auckland
Reference No [2017] NZERA Auckland 163
Hearing date 17-Mar-17
Determination date 06 June 2017
Member R Arthur
Representation W Reid ; K Ashcroft
Location Tauranga
Parties Dellaway-Smith and Anor v Wildzog Investments Ltd and Anor
Other Parties Smith ; Saunders
Summary PRACTICE AND PROCEDURE - Whether applicants could pursue personal grievance against first respondent company (“WIL”) or second respondent (“S”) personally - Undisclosed principal - Companies Act 1993 s25
Abstract AUTHORITY FOUND -;PRACTICE AND PROCEDURE: More likely than not that first applicant’s employment agreement did not refer to WIL. At outset of employment S did not meet onus of making plain to first applicant that WIL was principal and S was agent. Doctrine of undisclosed principal applies and first applicant may pursue personal grievance against S. Evidence about second applicant’s employment agreement inconclusive. Not more likely than not that WIL concealed from second applicant. Doctrine of undisclosed principal does not apply to second applicant. Second applicant likely knew that employment obligations really incurred on WIL’s behalf. Not just and equitable for S to be liable for employment agreement omitting name when employment agreement prepared by first applicant. S not personally liable under s 25 of Companies Act 1993.
Result Application partially granted ; Costs reserved
Main Category Practice & Procedure
Statutes Companies Act 1993 s25 ; Companies Act 1993 s248(1)(c) ; Companies Act 1993 s318(1)(d) ; ERA s174E ; ERA Second Schedule cl10
Cases Cited Clarence Holdings Ltd v Hall (2001) 9 NZCLC 262 (CA);Cuttance (T/A Olympus Fitness Centres) v Purkis [1994] 2 ERNZ 321 (EmpC);Knauf v Marshall [2015] NZHC 1717;Wilson v Bruce Wilson Painting & Decorating Ltd [2014] NZEmpC 83
Number of Pages 14
PDF File Link: 2017_NZERA_Auckland_163_amended.pdf [pdf 286 KB]