| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 346/04 |
| Determination date | 27 October 2004 |
| Member | L Robinson |
| Representation | P Cunningham ; D Grindle |
| Location | Whangarei |
| Parties | Century Yuasa Batteries (NZ) Ltd v Johnson |
| Summary | INJUNCTION - RESTRAINT OF TRADE - Respondent had previously sold agency business to applicant - Respondent resigned and set up own business - Whether enforceable restraint of trade - Whether valuable consideration given by applicant to respondent in exchange for respondent's promise to restrict how he earned his living once he left its employment - Applicant did not give valuable consideration - Not valid legal contract - Restraint ineffective and unenforceable - Order sought restraining respondent from disclosing confidential information obtained during employment including client list - Respondent had worked in industry for 30 years and knowledge of customers and personal relationships formed not confidential information - Not persuaded respondent improperly used specialised knowledge of applicant's pricing structures to own advantage - Satisfied respondent did not advise applicant's clients was intending to work for another business and did not solicit their custom to his new venture or act contrary to duty of fidelity - Orders for injunctions sought declined |
| Result | Application dismissed ; Costs reserved |
| Statutes | Illegal Contracts Act 1970 |
| Cases Cited | Bates v Gates (1986) 1 NZELC 95,269;Brown v Brown [1981] NZLR 484;Burnham v Amcor Kiwi Packaging, a Division of Amcor Packaging (New Zealand) Ltd unreported, A Dumbleton, 9 August 2004, AA 248/04;Fletcher Aluminium Ltd v O'Sullivan [2001] ERNZ 46 |
| Number of Pages | 4 |
| PDF File Link: | PDF file not available for download, please contact us to request a copy. |