| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 201/08 |
| Hearing date | 18 Feb 2008 - 19 Feb 2008 (2 Days) |
| Determination date | 06 June 2008 |
| Member | R A Monaghan |
| Representation | O Paulsen, G Abdinor ; K Morrison |
| Location | Auckland |
| Parties | Burnard International Ltd v Rahul Varma Saraya Povey |
| Summary | BREACH OF DUTY - GOOD FAITH - Applicant claimed respondents breached duties including implied duties of fidelity and good faith during employment - Respondents discussed dissatisfaction with employment and plans to start competing business with client “W” - Conduct disloyal - Unrealistic to suggest comments had no undermining effect, but relevant to overall conduct rather than claim in own right - Discussions with W not out of employment arena - Friendly relationship arose out of W’s status as client of applicant dealing with respondents as employees - W’s involvement created very obvious risk to applicant - Failure to advise of plan to set up competing business with W breach of duty - Administrative preparations for start of business not conducted in breach duty of fidelity - Aside from matters involving W, nothing to indicate respondents diverted or withheld business - Likely respondent’s misused confidential lists of clients and revenue - Breach of duty - Determination dealt only with question of liability - Remedies to be determined - Sales |
| Result | Application granted ; Remedies to be determined ; Costs reserved |
| Main Category | Good Faith |
| Cases Cited | Big Save Furniture Limited v Bridge [1994] 2 ERNZ 507;Morris v Interchem Agencies Limited unreported, Keith, Blanchard, Glazebrook JJ, 3 July 2003, CA 185/02;Needax Systems NZ Ltd v Waterford Security Ltd [1994] 1 ERNZ 491;NZ Grazing Co Ltd v Fraser-Jones unreported, V Campbell, 16 November 2005, AA 441/05;Sanders v Parry [1967] 2 All ER 803;Schilling v Kidd Garrett Ltd [1977] 1 NZLR 243;Varma v Burnard International Limited unreported, A Dumbleton, 17 March 2008, AA 98/08;Walden v Barrance [1996] 2 ERNZ 598 |
| Number of Pages | 21 |
| PDF File Link: | aa 201_08.pdf [pdf 64 KB] |