| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 191/08 |
| Hearing date | 23 May 2008 |
| Determination date | 27 May 2008 |
| Member | M Urlich |
| Representation | R Hargreaves ; G Bevan, A Shirley |
| Location | Auckland |
| Parties | Walklin v Chubb New Zealand Ltd |
| Summary | RESTRAINT OF TRADE - Applicant resigned and commenced employment with respondent’s competitor - Sought declarations as to what restraining clauses formed part of employment agreement with respondent and whether reasonable and enforceable - Question over which of three possible employment agreements covered relationship - Only first agreement executed by both parties - While respondent had propriety interest to protect in its client relationships, no evidence why restraint clause included in employment agreement - No evidence that at time of agreement applicant responsible for or had business connections or knowledge necessary to protect with restraint - Restraint not reasonable at time employment contract entered into - Applicant already employee at time agreement entered into and no evidence of consideration for restraint - Restraint of trade unreasonable and not supported by valuable consideration - Restraint unenforceable - Counterclaim for injunction declined as no breach of clause possible - Contracts manager |
| Result | Orders accordingly ; Costs reserved |
| Main Category | Restraint of Trade |
| Cases Cited | Fuel Espresso Limited v Hsieh [2007] NZCA 58;Radio Horowhenua Ltd v Bradley [1993] 2 ERNZ 1085 |
| Number of Pages | 6 |
| PDF File Link: | aa 191_08.pdf [pdf 26 KB] |