MediaWorks has lost to a rival billboard company at the Employment Relations Authority (ERA), needing to pay over $2000 in legal fees thanks to an employment spat.
MediaWorks Outdoors, the billboard wing of the company, took former employee Dae Chun and his current workplace, Go Media, to the ERA - seeking damages over an alleged breach of post-employment restraint obligations.
MediaWorks was attempting to enforce a restraint of trade clause on Chun - despite backing former radio host Tova O’Brien through a similar case, which she lost.
Chun started working for GO Media on February 20, after finishing up with his old employer on February 17.
However, MediaWorks lodged the injunction on March 22, just over a month after his new job began and more than two months since announcing his resignation.
MediaWorks alleged that Chun breached his contract around confidentiality, non-competition, non-solicitation and non-dealing.
Chun believed that the restraints were illegal, given the lack of garden leave and gap since he left MediaWorks.
The company was looking to be awarded penalties and damages from both Chun and his new workplace.
In their decision, the ERA said that MediaWorks' case was weak based on current evidence.
Authority member Rachel Larmer said: "It contrasted with the respondents’ claims that the restraints were unreasonable, illegal and unenforceable, which appeared strong on the face of it.
"Confidential information claims were vague, stated in overly broad terms, and lacked the detail that was required to objectively satisfy the Authority that the Applicant was concerned to protect truly confidential information.
"The Applicant’s claims that it had a legitimate proprietary interest and that the restraints it was seeking to enforce were reasonable appeared weak," she said.
MediaWorks will now have to pay both Chun and GO Media $1125 in legal costs.
Chun could be seen on social media celebrating the win, popping a bottle of prosecco.
It comes as MediaWorks is set to face further troubles in the ERA, facing action from former Today FM staff who were let go when the station collapsed in March.
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