Sales manager Ian Renner was ordered to pay $900,000 damages for lost sales incurred by employer Palmerston North motor vehicle dealer Robertson Isuzu after he plotted to poach customers in advance of his 2023 resignation.
Mr Renner breached legal duties of fidelity, good faith and loyalty owed any employer, the Employment Court ruled.
On a salary of $65,000 plus ten per cent sale commissions at time of his departure, Mr Renner had worked for Robertson Isuzu since 2004.
Evidence was given of Mr Renner being the driving force behind a Robertson Isuzu 2016 exclusive dealership negotiated with Japanese company ShinMaywa, supplier of truck add-ons such as rubbish compactors, side-tippers and side-loaders.
Waste Management (NZ) became a major Robertson Isuzu customer.
The court was told of Roberston Isuzu being blind-sided by Mr Renner’s July 2023 resignation. He was on sick leave at the time, prior to major surgery.
Only then through comment from customers did it learn Mr Renner personally had become ShinMaywa’s point of contact in New Zealand.
Robertson Isuzu’s analysis of his work devices found evidence of his email discussions with both ShinMaywa and Robertson Isuzu clients prior to his resignation, setting up Mr Renner to become ShinMaywa’s New Zealand representative.
In the Employment Court, Mr Renner challenged use of this evidence. These devices had been uplifted from his home while on sick leave, without disclosing that Robertson Isuzu planned to have the contents forensically examined, he said.
It is not necessary for an employer to be completely candid about inquiries it is making into an employee’s conduct, Judge Holden said. It was reasonable for Robertson Isuzu to uplift the devices without alerting Mr Renner, she said. Isuzu Robertson owned the devices.
It was not a breach of confidentiality for Mr Renner to share Isuzu Robertson customer email addresses with both ShinMaywa and his new clients. These addresses were already a matter of common knowledge; previously displayed as multiple address lists in Robertson Isuzu mailouts.
Mr Renner undermined Robertson Isuzu’s business in the four month period prior to his resignation, Judge Holden ruled.
He took steps to have himself appointed ShinMaywa’s New Zealand representative and represented to Robertson Isuzu clients that Robertson Isuzu would be in no position to deal with their orders after his resignation.
One week after Mr Renner’s resignation, ShinMawa contacted Robertson Isuzu advising that its exclusive dealership rights were cancelled, asking Robertson Isuzu to ‘confirm’ the change.
Attempts by Robertson Isuzu to negotiate with ShinMaywa were ignored.
Robertson Isuzu claimed it had suffered losses totalling $2.24 million, on the assumption its exclusive dealership would have run at least until 2030.
Judge Holden awarded $900,000 damages as ‘loss of a chance;’ an assessment of profits Robertson Isuzu would have made if Mr Renner had complied with a restraint of trade in his employment contract prohibiting him from soliciting existing customers for six months following resignation.
This figure is to be reduced by amounts still owed Mr Renner for commission earned on vehicles sold while employed at Robertson Isuzu; set at $75,800 in a preliminary assessment.
Mr Renner has been free to compete against his former employer since his six month restraint of trade ended.
Robertson Motors v. Renner – Employment Court (14.04.26)
26.137