| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 181/05 |
| Hearing date | 12 Apr 2005 |
| Determination date | 16 May 2005 |
| Member | R A Monaghan |
| Representation | S Franklin ; S Clews |
| Location | Auckland |
| Parties | Master Drives Services Ltd v Heenan |
| Summary | RESTRAINT OF TRADE - Alleged respondent, former employee, breached duty of fidelity and restraint of trade provision - Duty of fidelity - Respondent commenced own business after left employment with applicant - No evidence to show respondent did anything prior to end of employment which was damaging conduct that amounted to breach of fidelity - No evidence respondent did any more than advise clients was leaving employment with applicant - No breach of duty of fidelity - Whether restraint of trade binding on respondent - Pre incorporation contract, which was not ratified after incorporation not binding on parties pursuant to s182 Companies Act 1993 - Restraint of trade clause in employment agreement - Clause amended to be enforceable - Geographical area restricted to certain towns - One year period reduced to three months - Activities under restraint restricted - Applied only to respondent in personal capacity not his company - Respondent to file and serve statement identifying any specified activities carried out in own account or as sole trader |
| Result | Orders accordingly ; Costs reserved |
| Statutes | Companies Act 1993 |
| Cases Cited | Walden v Barrance [1996] 2 ERNZ 598 |
| Number of Pages | 7 |
| PDF File Link: | aa 181_05.pdf [pdf 47 KB] |