Belatedly reading the fine print in Lynx Recruitment’s six page terms and conditions, Auckland company Ester Electrical subsequently learnt it could not refuse to pay when complaining staff provided by Lynx were incompetent, stuffing up a Parnell apartment build requiring remediation work costing some $290,000.
Lynx provides skilled staff as requested by clients for short-term work. Lynx terms and conditions specifically exclude liability for any damage caused by on-hire staff and require invoices be paid without set-off within seven days. Payment on time, with arguments sorted later, is the tenor of Lynx’ contract.
Lynx took steps to put Ester Electrical into liquidation for unpaid invoices totalling $130,000.
Ester refused to pay, claiming some of the electricians supplied by Lynx Recruitment were incompetent. Their work had to be redone.
In the High Court, Associate Judge Lester said it is common practice in commercial contracts to prohibit set-offs, forcing clients to pay immediately even when there is an ongoing dispute, still unresolved.
Lynx Recruitment is within its rights to impose robust ‘no set-off’ rules, he said. The fact Ester Electrical signed these terms and conditions without reading is of no relevance.
Judge Lester ordered Ester Electrical pay the outstanding $130,000 invoice within three weeks, or face liquidation.
He dismissed Ester’s claims that false CVs supplied by staff meant Lynx made false and misleading statements about the competence of staff provided, in breach of both the Consumer Guarantees Act and the Fair Trading Act. Neither of these statutes apply to services provided for businesses by Lynx when sourcing skilled staff, Judge Lester said.
Lynx terms and conditions specifically exclude liability for what an individual may have incorrectly claimed on their CV.
Ester Electrical Ltd v. Lynx Recruitment Ltd – High Court (30.10.25)
26.002