| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Wellington |
| Reference No | WA 46/08 |
| Hearing date | 18 Apr 2008 |
| Determination date | 19 April 2008 |
| Member | P R Stapp |
| Representation | P Cullen, R Burt ; A Knowsley, J Graham |
| Location | Wellington |
| Parties | 24 Carrot Ltd v Ye-Qing and Anor |
| Other Parties | Capital Produce Ltd |
| Summary | INTERIM INJUNCTION – Restraint of trade – Applicant sought injunction to prevent breach of contractual obligations – Matter dealt with under urgency – Applicant claimed first respondent unlawfully obtained confidential information, breached restrictive covenants, and confidentiality covenants – Applicant claimed respondents’ conduct causing potential revenue and profit losses – Claimed first respondent directly contacted applicant’s clients aided and abetted by second respondent – First respondent denied enticing clients – Authority found parties reached some agreement on matters at investigation meeting, however, differed over extent of remaining orders – Authority satisfied existence of arguable case given credibility differences between parties – Authority found damages as alternative would not resolve immediate potential loss of unrecoverable business and goodwill – Authority found damages not sufficient remedy when applicant had right to enforce restraint of trade in individual employment agreement – Authority found balance of convenience favored applicant – Found applicant narrowed application of restraint of trade in interim – Found delay could impact on remedies where unclear recoverable from respondents – Authority found given respondents conceded made some profit from applicant’s customers real risk applicant incurring further losses involving respondents - Found overall justice favored applicant – Authority in interim ordered respondent to refrain from soliciting clients of applicant, to return applicant’s documents and data, and to allow independent technology expert to check if applicant’s data removed from respondent’s computer – Interim orders to take effect until substantive matters heard |
| Result | Application granted ; Costs reserved |
| Main Category | Injunction |
| Number of Pages | 9 |
| PDF File Link: | wa 46_08.pdf [pdf 36 KB] |