| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | CA 160/04 |
| Hearing date | 13 Dec 2004 |
| Determination date | 17 December 2004 |
| Member | H Doyle |
| Representation | P Barrett ; S England |
| Location | Christchurch |
| Parties | Strait Freight Ltd v Shackleton and Anor |
| Other Parties | Harwood |
| Summary | JURISDICTION - INJUNCTION - Application for interim injunction enforcing restraint of trade - Respondents were co-directors and shareholders of STL - Contract between applicant and STL to haul applicant's freight trailers (contract") - Applicant employed respondents - Restraint of trade for five years from date of employment agreement only if contract continued - However restraint of trade would continue if STL cancelled contract - Respondents resigned - Applicant cancelled contract - Applicant alleged contract cancelled because STL repudiated contract - Whether employment agreement included implied term that cancellation by STL included repudiation - Whether Authority had jurisdiction to determine status of condition in contract pertaining to restraint of trade - Subject matter of employment relationship problem was alleged breach of restraint of trade covenant in employment agreement - Authority not being asked to make judgment or damages award in terms of contract - Status of condition contained in contract related to employment relationship only by virtue of restraint of trade covenant - Authority had jurisdiction to deal with interim injunction application - No arguable case in respect of second respondent as no evidence of anticipated breach - Clearly arguable that term with respect to repudiation could be implied into contract - Arguable whether there was repudiation of contract - Issue as to lawfulness of restraint of trade given length - Arguable restraint of trade had been breached - Would be difficult to assess applicant's damages in event permanent injunction granted - First respondent still able to be involved in trucking business - Interim injunction against first respondent granted - Parties directed to mediation" |
| Result | Application granted (First respondent) ; Application dismissed (Second respondent) ; Orders accordingly ; Costs reserved |
| Statutes | ERA s5;ERA s161;ERA s161(1)(b);ERA s161(1)(r) |
| Cases Cited | Fletcher Aluminium Ltd v O'Sullivan [2001] ERNZ 46 ; [2001] 2 NZLR 731;Klissers Farmhouse Bakeries Ltd v Harvest Bakeries Ltd [1985] 2 NZLR 129;Pain Management Systems (NZ) Ltd v McCallum unreported, Panckhurst J, 14 August 2001, HC Christchurch, CP72/01;Waikato Rugby Union (Inc) v New Zealand Rugby Football Union (Inc) & Ors [2002] 1 ERNZ 752 |
| Number of Pages | 8 |
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