| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 367/08 |
| Hearing date | 22 Sep 2008 |
| Determination date | 23 October 2008 |
| Member | V Campbell |
| Representation | A McInally ; R Towner |
| Location | Rotorua |
| Parties | New Zealand Amalgamated Engineering, Printing and Manufacturing Union Inc v Carter Holt Harvey Ltd |
| Summary | BREACH OF CONTRACT – Applicant claimed respondent breached collective employment agreement (“CEA”) in ceasing to provide bus transport service – Service provided for forty years – Applicant claimed was mistake that no transport service provision in CEA – Applicant sought rectification of alleged mistake by Authority – Historical Award expressly provided that respondent to pay for transport – First CEA altered transport provision – During 2003 CEA negotiations transport clause removed from CEA – Terms of settlement from negotiations recorded intention to discuss transport – Applicant claimed terms of settlement supported argument that agreement to remove transport allowance did not mean applicant agreed to removal of transport service in future – Current 2005 CEA based on 2003 CEA - Transport issue raised but not renegotiated during 2005 negotiations – Found 2005 CEA made no mention of transport service – Respondent argued consulted applicant then removed transport service as high cost and poor usage – Authority noted rectification rare and discretionary equitable remedy – Authority noted evidence must clearly establish that mistake made; instrument did not represent common intention; what common intention was; and whether common intention in minds of parties when document executed – Authority found no common intention that respondent contractually obligated to continue to provide transport service – Found CEA accurately recorded intentions of parties and agreements reached during negotiations – Further factor that CEA contained “completeness” clause – Application for rectification declined |
| Result | Application dismissed ; Costs reserved |
| Main Category | Breach of Contract |
| Cases Cited | NZ Engineering Union v Babcock NZ [1997] ERNZ 82;Snamprogetti Ltd v Phillips Petroleum Co UK Ltd [2001] EWCA Civ 889 |
| Number of Pages | 7 |
| PDF File Link: | aa 367_08.pdf [pdf 35 KB] |