| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 311/10 |
| Hearing date | 28 Jun 2010 |
| Determination date | 02 July 2010 |
| Member | R A Monaghan |
| Representation | T Allan ; R Upton |
| Location | Auckland |
| Parties | Sheppard Industries Ltd v Marshment |
| Summary | INJUNCTION – RESTRAINT OF TRADE – Applicant claimed respondent breach terms of restraint of trade, confidentiality and conflict of interest provisions of employment agreement by entering into employment relationship with competitor (“Specialised”) – Applicant sought interim injunction requiring respondent to comply with employment agreement – Applicant had exclusive distributorship agreement with Specialised – Specialised ended distributorship with applicant – Applicant claimed respondent privy to sensitive commercial information and critical to persuade dealers whether to remain with applicant or move to Specialised – Respondent resigned from position with applicant with intention to take up sales position with Specialised – Respondent claimed employment agreement containing restraint provision varied and not supported by consideration and therefore unenforceable – Authority rejected claim because no evidence of earlier agreement or information about circumstances of change – Found strongly arguable restraint on activity of this kind reasonable – Found arguable six month restraint reasonable – Found no geographical limit on restraint and matter not developed for purposes of interim application apart from indication Australasian-wide restraint expected – Found restraint without geographical limit unreasonable but modification of geographical limit would be reasonable – Found arguable respondent unlikely to be able to meet award of damages – Found any disadvantage or inconvenience respondent may suffer as result of grant of interim order likely to be short-lived – Found balance of convenience favoured applicant – Found applicant had arguable case respondent breached restraint of trade – Authority ordered respondent to refrain from carrying out obligations under employment agreement with Specialised pending resolution of substantive matter or expiry of period of restraint – Account manager |
| Result | Application granted ; Orders made ; Costs reserved |
| Main Category | Injunction |
| Number of Pages | 11 |
| PDF File Link: | aa 311_10.pdf [pdf 37 KB] |