Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No CA 35/04
Hearing date 25 Mar 2004
Determination date 26 March 2004
Member P Cheyne
Representation A Toohey ; B McDonald
Location Christchurch
Parties Versatile Buildings Ltd v Coates
Summary INJUNCTION - Interim and permanent injunctions sought against respondent - Injunctions sought preventing respondent from being involved in business of certain competitors, using/disclosing confidential information and soliciting clients or employees of applicant - Whether enforceable restraint of trade provision - Parties negotiated terms on which respondent's employment to terminate - Respondent approached employee of applicant - Indication that respondent to become employee or contractor of competitor - Arguable case that restraint reasonable and enforceable or could be made so - Arguable case that respondent intended to breach restraint - Balance of convenience in favour of applicant - Interim injunction granted requiring respondent not to work directly or indirectly in specified industry for 12 months pending further Authority order - Application adjourned concerning further interim injunctions sought - Applicant entitled to protection by respondent providing formal undertaking not to use/disclose applicant's confidential information - Direction that parties participate in mediation - Manufacturing manager
Result Interim injunction granted ; Orders accordingly ; Costs reserved
Statutes ERA s68(4)
Number of Pages 6
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