| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | CA 216/09 |
| Hearing date | 11 Dec 2009 |
| Determination date | 16 December 2009 |
| Member | H Doyle |
| Representation | S Cook, A Harlow ; A Marsh |
| Location | Christchurch |
| Parties | Precision Tracking (NZ) Ltd (formerly CTL Finance Ltd) v Tait |
| Summary | INJUNCTION – Application for interim injunction enforcing restraint of trade and confidentiality obligations – Off road tracking system developed for company – Applicant considered system important asset – Assets and goodwill sold when company went into receivership – Respondent’s employment terminated but continued to work on week to week basis – Respondent became manager of competing company – Applicant relied on assignment of restraint of trade covenant under Sale and Purchase Agreement and Deed of Assignment – Respondent argued restraint of trade covenant not capable of assignment because personal relationship contemplated between parties – Authority found serious question to be tried – Found restraint of trade arguably reasonable as restrictively drafted – Found arguable respondent competed in breach of restraint of trade – Found obligations of confidentiality owed by respondent enforceable – Found respondent in possession of customer lists – Found respondent set up Gmail email account specifically to transfer sensitive information – Found respondent questioned whether in position to encourage customers to move to new company – Found respondent retained hard drive – Applicant argued real risk respondent had used confidential information – Found balance of convenience favoured applicant in terms of ensuring confidential information not used but favoured respondent in terms of restraint of trade – No order to restrain respondent – Found order respondent not use or disclose confidential information adequate protection – Found respondent must deliver all confidential information in possession to applicant |
| Result | Application granted (confidentiality obligations) ; Application dismissed (restraint of trade) ; Costs reserved |
| Main Category | Injunction |
| Statutes | ERA;Receivership Act 1993 |
| Cases Cited | Bradford Trust Limited v Paul Edward Roebeck Limited & Ors unreported, Venning J, 7 Dec 2006, CIV 2006-404-007111;Castle Parcels Limited v Dale (1988) 2 NZELC 96, 774;Gardner v Cooper unreported, 24 Oct 1990, Heron J, CP 1360/90;Klissers Farmhouse Bakeries Ltd v Harvest Bakeries Ltd [1985] 2 NZLR 129;Nokes v Doncaster Amalgamated Collieries Limited [1940] AC 1014;PGG Wrightson Ltd v Jary unreported, Colgan CJ, Shaw, Couch JJ, 10 Oct 2008, CC 14/08;Post Haste Couriers Ltd v Casey unreported, Holland J, 24 Oct 1990, CP 83/89;Welsted v Hadley 21 TLR 165;William v Masters [1912] 31 NZLR 1148 |
| Number of Pages | 14 |
| PDF File Link: | ca 216_09.pdf [pdf 46 KB] |