| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 240/06 |
| Determination date | 17 July 2006 |
| Member | A Dumbleton |
| Location | Auckland |
| Parties | Harcombe v Bakers Delight (NZ) Ltd |
| Summary | COSTS – Authority determined that respondent had breached Parental Leave and Employment Protection Act 1987 and awarded applicant $3,000 compensation – Authority criticised respondent for failing to act swiftly and rectify problem when it was discovered – Failure to act caused applicant to engage professional employment law consultant/advocate (O) – O’s fees were $6,975 including GST which equated to about 22 hours work – Respondent alleged O’s fees were excessive and that costs should lie where they fall – Respondent not in position to complain about O’s fees – Would be entirely unjust if applicant ended up out-of-pocket overall – Awards on full indemnity basis rare in Authority – However exceptional circumstances of case fully justified much higher award than usual reasonable contribution level – Applicant should not have to use any of compensation to make up shortfall between costs award and her actual costs – Time spent attempting mediation (which respondent did not attend) claimable – Later time spent in mediation at Authority’s direction also claimable as Authority regarded it as extension of investigation – Respondent never had case to pursue – Binnie v Pacific Health (cited below) did not preclude award of full costs - Binnie mentioned that fully compensating party for legal costs could be done by award of special damages rather than party and party costs - Reimbursement by employer of employee's legal fees as special damages seemed particularly appropriate where employment relationship ongoing one - Respondent ordered to pay applicant full amount of her legal costs |
| Result | Costs in favour of applicant ($6,975) ; Disbursements (filing fee)($70) |
| Statutes | Parental Leave and Employment Protection Act 1987 |
| Cases Cited | Binnie v Pacific Health Ltd [2002] 1 ERNZ 438 |
| Number of Pages | 3 |
| PDF File Link: | aa 240_06.pdf [pdf 51 KB] |