| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2017] NZERA Christchurch 225 |
| Hearing date | 20-Dec-17 |
| Determination date | 21 December 2017 |
| Member | H Doyle |
| Representation | A Gallagher, C Mo ; R Thompson, M McDonald |
| Location | Christchurch |
| Parties | Rangiora Couriers Ltd v Brace |
| Summary | INJUNCTION – Restraint of Trade – Applicant sought interim injunction requiring respondent to comply with restraint clauses in Employment Agreement (“EA”) that survived termination of employment – Courier Driver |
| Abstract | AUTHORITY FOUND –;INJUNCTION: Arguable that applicant had proprietary interest in trade connections with respect to respondent’s relationship with its clients. Non-competition clause arguably goes beyond what is reasonably necessary to protect proprietary interests. Clause arguably unenforceable. Arguable that non-dealing restrictive covenant goes beyond what is reasonably necessary to protect proprietary interests of client relationships. The nature of respondent’s role could arguably prevent her from being able to work. Non- solicitation restraint and its duration of three months is arguably reasonable. Non - solicitation clause could be enforceable. Evidence presented did not provide a strongly arguable case that there was breach of confidentiality. Balance of convenience favours respondent in respect to confidential information and non-dealing clause. Balance of convenience lies with applicant in regards to non-solicitation restraint. Overall justice favours limited interim injunction to protect applicant from solicitation of its clients. Respondent ordered to comply with amended non-solicitation restraint. |
| Result | Application partially granted ; Orders made ; Costs reserved |
| Main Category | Injunction |
| Statutes | Contract and Commercial Law Act 2017 s83;ERA s164 |
| Cases Cited | Broadcasting Corporation of NZ v Nielsen (1988) 2 NZERLC 96, 040 (HC);Cooney v Welsh [1993] 1 ERNZ 407 (CA);Enterprise Staff Consultants NZ Ltd v Durno [1998] 3 ERNZ 547 (EmpC);Gallagher Group Ltd v Walley [1999] 1 ERNZ 490 (CA) |
| Number of Pages | 14 |
| PDF File Link: | 2017_NZERA_Christchurch_225.pdf [pdf 204 KB] |