| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2017] NZERA Christchurch 219 |
| Hearing date | 14-Dec-17 |
| Determination date | 15 December 2017 |
| Member | D Appleton |
| Representation | G Malone ; L Claringbold (in person), A Marsh |
| Location | Nelson |
| Parties | Rutherford Hotel Holdings Ltd v Claringbold and Anor |
| Other Parties | Monaco Management Ltd |
| Summary | INJUNCTION – Applicant sought interim injunction restraining first respondent from working for second respondent |
| Abstract | AUTHORITY FOUND –;INJUNCTION: Some information that applicant provided respondent during employment could be classified as confidential. Respondent held legitimate proprietary interest in need of protection by Restraint of Trade (“ROT”) clause. ROT clause went further than necessary to protect proprietary interests of applicant. ROT clause unenforceable. Alternative remedies not likely to be available. Genuine offer of undertakings from second respondent not to use confidential information over specific period of time weighs in balance against granting an injunction. Balance of convenience lies with first respondent. Not appropriate to restrain first respondent from working for second respondent until 2 January 2018. Application for injunctive relief dismissed. |
| Result | Application dismissed ; Costs reserved |
| Main Category | Injunction |
| Statutes | Contract and Commercial Law Act 2017 s83;ERA s134(1);ERA s134(2);ERA s161;ERA s164;Illegal Contract Act 1970 |
| Cases Cited | Air New Zealand v Kerr [2013] NZEmpC 153;Faccenda Chicken Ltd v Fowler [1985] 1 All ER 724 (Ch);Fletcher Aluminium Ltd v O’Sullivan [2001] 2 NZLR 731 (CA);Gallagher Group Ltd v Walley [1999] 1 ERNZ 490 (CA);Vector Gas Ltd v Bay of Plenty Energy Ltd [2010] 2 NZLR 444 (SC);Welsh v Cooney [1993] 1 ERNZ 407 (CA) |
| Number of Pages | 21 |
| PDF File Link: | 2017_NZERA_Christchurch_219.pdf [pdf 83 KB] |