| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2011] NZERA Auckland 122 |
| Hearing date | 24 Mar 2011 |
| Determination date | 29 March 2011 |
| Member | E Robinson |
| Representation | A Lloyd, V Hodgson ; J Eichelbaum |
| Location | Auckland |
| Parties | Premier Events Group Ltd and Anor v Beattie and Ors |
| Other Parties | BA Partners Ltd, Regan, Panapa |
| Summary | PRACTICE AND PROCEDURE – Application for removal to Employment Court (“EC”) - Applicants claimed respondents breached terms of employment agreements, primarily restraint of trade and related terms – First and second respondents filed claims in Authority against applicants for unilateral reductions in salary and other issues – Applicants sought removal to EC on grounds important questions of law likely to arise other than incidentally and in all circumstances EC should determine matter - Respondents claimed no important questions of law involved, removal application was delaying tactic, and fiduciary duties and confidential information claims not so complex Authority unable to deal with them – Applicants had made claims in High Court regarding breaches of fiduciary duties and restraint of trade provisions, misuse of confidential information, knowing receipt, and conspiracy by unlawful means - Applicants claimed question of scope and enforceability of restraints pleaded, and whether restraints prevented actions by respondents, was important question of law because would be determinative of case – Claimed outcome of case would have significant ramifications for small industry which rendered it important question of law - Authority accepted determination of claims regarding breaches of restraint provisions and misuse of confidentiality would be complex task given factual complexity of matters at issue – Accepted if restraint clauses found to be unenforceable applicants could experience significant loss possibly in the millions of dollars – Accepted outcome of case of significant consequence for applicant - Applicants claimed important questions of law arose out of first respondent’s bonus entitlement claim due to interrelatedness of parallel High Court proceedings – Authority accepted respondents’ submission that that disadvantage grievance arising from claim was of nature heard regularly by Authority – However, accepted was risk in proceeding to determine matter without reliance on outcome from High Court – Found extent to which employment jurisdiction could determine such matters, without undermining jurisdiction of High Court, constituted important question of law - Authority rejected applicants’ submission that issue regarding second respondent’s shareholding was implied term and condition of employment was novel and important question of law - Authority found more significant applicant’s submission that important question of law arose in respect of whether Authority could determine matters based on shareholder entitlement and oppression, especially in situation in which shares held by second respondent’s family trust rather that by second respondent personally, which were fundamental matters of company law and fell within jurisdiction of Companies Act 1993 and High Court - Authority found that in current proceedings various factors including complex nature of expert evidence, importance of matters to parties, and quantum involved, all acted as powerful indicators as to likelihood Authority determination would be appealed on de novo basis to EC – Found would be cost effective to have matters heard in one forum – Found in all circumstances EC should determine matter – Application for removal granted |
| Result | Application granted ; No order for costs |
| Main Category | Practice & Procedure |
| Statutes | Companies Act 1993;Employment Court Regulations 2000;ERA s156;ERA s178;ERA s178(2)(d);High Court Rules |
| Cases Cited | Auckland District Health Board v X [2005] ERNZ 551;Hanlon v International Educational Foundation (NZ) Inc [1995] 1 ERNZ 1;NZ Baking etc Employees Union v Foodtown Supermarkets Ltd [1992] 1 ERNZ 266 |
| Number of Pages | 7 |
| PDF File Link: | 2011_NZERA_Auckland_122.pdf [pdf 38 KB] |