| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 180/05 |
| Hearing date | 20 Jan 2005 |
| Determination date | 16 May 2005 |
| Member | Y S Oldfield |
| Representation | R Parmenter ; P Swarbrick |
| Location | Auckland |
| Parties | Faber v Farmers' Holdings Ltd |
| Summary | GOOD FAITH - BREACH OF CONTRACT - Applicant alleged respondent's CEO deliberately misled him in order to avoid payment of bonus to which he would otherwise have been entitled - Respondent's parent company was selling respondent - Applicant to receive bonus in event of sale - Sale negotiations came to a halt - Applicant resigned and parties agreed on 24 October as conditional departure date - Conditions not met by 13 October as planned - Sale went ahead and CEO advised applicant target settlement date for sale was 24 October - Applicant wished to change departure date to get bonus - On 15 October CEO told applicant new departure date could be 31 October and showed him part of email from parent company saying sale process should be before that date - Did not disclose rest of email which stated settlement expected to occur between 24 October and 7 November - Departure date presented on take it or leave it" basis - Settlement took place on 6 November after applicant had left - CEO had shown applicant email to reassure him sale would go through prior to 31 October - CEO knew there was no certainty sale would go through in time - Breach of good faith - As a direct result of breach applicant lost bonus of $122,312.50 - Entitled to damages in that amount - PENALTY - Penalty declined - Senior executive" |
| Result | Application granted ; Damages ($122,312.50) ; Costs reserved |
| Number of Pages | 6 |
| PDF File Link: | aa 180_05.pdf [pdf 40 KB] |