Restrictions OK
Jurisdiction Employment Relations Authority - Wellington
Reference No WA 54/07
Hearing date 20 Feb 2007
Determination date 12 April 2007
Member G J Wood
Representation D Alderslade ; J Cleary
Location Wellington
Parties Scenario Communications Ltd v Bailey
Summary BREACH OF CONTRACT - Applicant claimed respondent breached employment agreement by doing work on own behalf, misappropriating property, attempting to solicit co-workers to work with him, and not devoting full working time and attention to applicant - Damages - Respondent denied breaches, except for taking some property, which subsequently returned - Respondent clearly breached duty of fidelity by attempting to take work opportunity with a contact of applicant - Prepared own pitch independent of applicant - Constituted breach because used property for personal use without permission - However, no damage suffered as result - Respondent did other work and charged for it personally - Breached conflict of interest clause prohibiting respondent engaging in other employment without applicant's express consent - Respondent to pay damages equal to amount he charged personally - Respondent took electronic and physical property of applicant - No evidence applicant suffered loss - Claim respondent used applicant's time to set up own business dismissed - Respondent's approaches to two co-workers about working with him or for him in own business constituted endeavours to entice them away from applicant - Breach not serious given efforts unsuccessful and no damage suffered - PENALTY - All breaches exposed respondent to penalty claim - Respondent took cavalier and reckless approach to his employment obligations - Did not refer back to them even when applicant specifically brought to his attention - Respondent liable to substantial penalties - Damages for conflict of interest breach and lack of direct damage resulting from other breaches taken into account in penalty award - Communications design director
Result Applications granted ; Damages ($3,070) ; Penalty ($5,000)(Payable to Crown) ; Costs reserved
Main Category Breach of Contract
Number of Pages 9
PDF File Link: wa 54_07.pdf [pdf 35 KB]