Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No AA 129/04
Hearing date 1 Apr 2004
Determination date 16 April 2004
Member K J Anderson
Representation P Churchman ; L Campbell
Location Auckland
Parties Duffill Watts & King Ltd v Moore
Summary INJUNCTION - RESTRAINT OF TRADE - Application for injunction preventing respondent from further work with new employer (M") in relation to particular contract with third party ("TP") - M and applicant only tenders for contract - Respondent former employee - Respondent accepted restraint of trade covenant in original employment agreement - Covenant carried over to last employment agreement so consideration not at issue - Narrow application of covenant because restricted activities had to be reasonably construed as taking advantage of former position to detriment of applicant - Two year term unreasonable and illegal - Modified to one year - No geographical boundary - Modified to province of Bay of Plenty - Respondent's involvement with contract via M constituted breach of restraint of trade - Ordered to refrain from further involvement"
Result Application granted ; Injunction ordered ; Costs reserved
Statutes ERA s137;ERA s161;Illegal Contracts Act 1970 s8;Illegal Contracts Act 1970 s8(1)(b)
Cases Cited Gallagher Group Ltd v Walley [1999] 1 ERNZ 490;Medic Corporation Ltd v Barrett [1992] 3 ERNZ 977;Pendergrast v Davies unreported, Potter J, 1 August 2002, CP685-SW01;Radio Horowhenua Ltd v Bradley [1993] 2 ERNZ 1085;Stenhouse Australia Ltd v Phillips [1974] AC 391
Number of Pages 10
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