| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 290A/10 |
| Hearing date | 23 Oct 2009 |
| Determination date | 12 July 2010 |
| Member | J Wilson |
| Representation | E Briggs ; C Bennett |
| Location | Auckland |
| Parties | Catherine's Fashionware Ltd t/a Apparel House v Rowe |
| Summary | RESTRAINT OF TRADE – PENALTY – Employment agreement (“EA”) contained restraint of trade provision – Respondent claimed resigned due to stress caused by managing director – Respondent formed new company to carry out contract work – Respondent became distributor for company formally supplier of applicant – Respondent adamant no arrangements made with company prior to resignation – Applicant became aware of arrangement when email accidentally sent to respondent’s old email address – Authority found restraint clause reasonable and enforceable – Found information to which respondent privy of proprietary interest to applicant – Found by time applicant aware of breach of restraint of trade clause, restraint period almost over – Found compliance order would have had no impact on losses applicant said sustained – Found respondent did not breach restraint of trade position regarding employment or solicitation of employees or clients of respondent – Found entry on respondent’s company’s website referring to employment with applicant technically breach of EA – Found respondent breached EA but genuinely believed, by time took up arrangement with new company, restraint period expired – $500 penalty appropriate – Product manager |
| Result | Application granted ; Penalty ($500)(Payable to Crown) ; Costs reserved |
| Main Category | Restraint of Trade |
| Statutes | ERA s136(1) |
| Number of Pages | 10 |
| PDF File Link: | aa 290a_10.pdf [pdf 43 KB] |