Restrictions OK
Jurisdiction Employment Relations Authority - Christchurch
Reference No CA 140/09
Hearing date 27 Aug 2009 - 28 Aug 2009 (2 days)
Determination date 31 August 2009
Member P Montgomery
Representation J Goldstein ; A Shakespeare
Location Christchurch
Parties CH Commercial Cleaning Ltd v Brown and Anor
Other Parties Brown
Summary GOOD FAITH – BREACH OF CONTRACT – Applicant alleged breach of implied and statutory duties of good faith and breach of terms of settlement – No employment agreement – First respondent resigned position and established competing business – Applicant alleged confidential information acquired in course of employment used in new business – Applicant claimed first respondent assisted by second respondent in wresting applicant’s contracts – Authority found no evidence to support claim – Applicant argued respondents set up business and competed with respondent during employment – Dispute as to when employment ended – Found employment relationship ended on date returned all work related equipment – Found respondent held certain information but fell outside classification of proprietary interest – Respondent approached colleague during course of employment to join new business – Found breach of implied duty of fidelity and good faith – Respondent advertised new business – Applicant argued breach of good faith in targeting applicant’s customers – Found advertisement generic and no breach of good faith – PENALTY – Parties to attempt to resolve penalty issue and costs – Sales manager
Result Application granted in part ; No order for costs
Main Category Good Faith
Cases Cited Marshall v Market Gardeners Ltd unreported, Travis J, 14 February 2001, AC6/01;Rooney Earthmoving Ltd v McTague Whiting & Bartlett unreported, Travis J, 24 August 2009, CC10/09;Schilling v Kidd Garrett Ltd [1977] 1 NZLR 243
Number of Pages 14
PDF File Link: ca 140_09.pdf [pdf 53 KB]