Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No AA 23/02
Determination date 08 February 2002
Member R A Monaghan
Representation N Taylor ; Scott in person ; Raines in person
Location Auckland
Parties NetworksDirect Ltd v Scott
Other Parties Raines
Summary BREACH OF CONTRACT - Alleged solicited staff and clients and misused confidential information - Resigned to form own company - Alleged solicited company accountant - No evidence of intention to make offer of employment - Discovered co-worker's curriculum vitae on work computer - Either used as basis for preparing own CV or printed it out for co-worker - Not used to recruit co-worker - Alleged obtained copy of customer database - Contacted applicant's customers - Database sourced from elsewhere - Did not misuse confidential information - No breach of duty or contract - RESTRAINT OF TRADE - Prevented from soliciting customers or potential customers for 6 months - Approached by customer regarding purchase of goods - Meaning of solicit" - Mere communication did not amount to solicitation - Appropriate to adopt broader meaning - Customer initiated business contact - Relationship based on price of goods - No breach of restraint of trade clause - Period of 6 months excessive - Computer software suppliers"
Result Application dismissed ; No order for costs
Cases Cited Dee Jay Distributors Ltd v Yarrows (The Bakers) Ltd unreported, Goddard CJ, 12 April 1995, WEC 24/95;Deloitte & Touche Consulting Group-ICS Ltd v Halsall unreported, Colgan J, 24 July 1997, AEC 74/97;Walden v Barrance [1996] 2 ERNZ 598
Number of Pages 10
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