Wendy Brown (top left, not the toddler) worked for Ray White Kaitaia for about six months in 2020. In late 2020 an employment relationship problem arose and like many such problems the parties settled in mediation; Brown then went out on her own.
Ray White Kaitaia’s legal name is Far North Circle Real Estate Limited (FNCREL). Brown is the director of a company called Northland Realty Limited. It appears that the two businesses are competitors.
The post-employment covenants were fairly standard, and included confidentiality, non-solicitation of unspecified duration, and non-disparagement clauses. Unsurprisingly, we saw no evidence of restraint of trade, this being an industry where competition and employee mobility are taken for granted. It’s worth noting that the Real Estate industry is heavily policed by the Commerce Commission, which regularly prosecutes agents for price fixing and other cartel-like activity.
A 2021 determination by Robin Arthur, Member of the Employment Relations Authority, notes that Brown breached the non-disparagement clause. She was ordered to pay $2,000 in penalties, $1,500 in costs and the $71.56 filing fee.
Half of the penalty was payable to Ray White Kaitaia and half to the Crown.
3.5 years later, in October 2024, Ray White Kaitaia was back in the Authority complaining about more disparagement. Ka-ching! Another $4,000 plus the $71.55 filing fee, again before Member Arthur (we sympathise, Sir). As far as we’re aware this is the first time a former employee has been pinged twice for disparagement.
While not always avoidable it’s generally not good business practice to disparage the competition. But it’s an even worse idea for a franchisee to advertise via any media that feels like picking up the story how thin skinned they are, raising a disparagement beef with the same person twice. That gives the unfortunate impression that the target (Brown) is being attacked for being good at her job as an independent in a competitive market.
Perhaps that’s all it is, but the franchisor’s General Counsel might want to look into it because if this happens again Ray White could come to the attention of the scary Commerce Commission.
Tristam Price
Editor
“De-mystifying employment law since 2019”
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