Restrictions OK
Jurisdiction Employment Relations Authority - Wellington
Reference No WA 145/04
Hearing date 27 Oct 2004 - 29 October 2004 (2 days)
Determination date 01 November 2004
Member P R Stapp
Representation P Churchman, B Fleming ; M Gazley
Location New Plymouth
Parties Barnardos Charitable Trust v Cave and Ors
Other Parties Cottam, Duncan
Summary INTERIM INJUNCTION - Application to enforce restraint of trade - Alleged respondents breached provisions relating to confidential information, conflict of interest and restraint of trade - Respondents resigned and advertised for home-based educators - Accepted that two new employees previously employed by applicant - Alleged during course of employment acted in contravention of terms of employment by applying for licenses to set up competing service - Alleged respondents failed to seek consent in respect to potential conflict of interest as required - Alleged misused confidential information - Claimed respondents actions caused loss of income for applicant - Arguable case - Very nature of restraint of trade provisions in employment agreements gave rise to arguments about enforceability - Issue about extent of restraint - Balance of convenience in favour of respondents - Alternative remedies available - Overall justice of case best achieved by full investigation - Early dates existed for investigation - Application declined - COSTS - Costs to lie where they fall - Respondents conduct in relation to not producing relevant documents caused some inconvenience but fell short of establishing unnecessary costs incurred - Left open to reconsider costs if evidence in substantive investigation showed one side had been put to unnecessary cost - In that regard costs reserved for any decision required on a variation - Expected that parties engage in discussions to resolve outstanding matters - Teachers
Result Application declined ; Orders accordingly ; Costs to lie where they fall
Cases Cited Gallagher Group Ltd v Walley [1999] 1 ERNZ 490;Klissers Farmhouse Bakeries Ltd v Harvest Bakeries Ltd [1985] 2 NZLR 129 (CA);Medic Corporation Ltd v Barrett [1992] 3 ERNZ 977
Number of Pages 12
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