Real Estate brands battle it out over salesperson

PHOTO: Christopher Day. FILE

A former real estate agent in Wellington has been accused of violating a non-compete clause in his contract by joining a rival agency shortly after resigning from his previous position.

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The agent, whose name has not been disclosed, had worked for a Wellington-based real estate company for several years before leaving in March this year. According to a statement from his former employer, she had signed a contract that included a non-compete clause, which prohibited him from working for a competing agency for a certain period of time after leaving.

However, the company alleges that the agent ignored this clause and started working for a rival agency just a few weeks after resigning. The company says this constitutes a “clear breach of contract” and has taken legal action against the agent.

Redcoats Ltd (The Professional Redcoats) went to the High Court seeking an interim injunction against its former employee Christopher Day and rival real estate agency Andco Realty Ltd (Lowe & Co) which hired him.

The company’s managing director said that non-compete clauses are common in the real estate industry and are meant to protect companies from losing clients and confidential information to their competitors. He added that the company had invested time and resources in training the agent, and that her actions had damaged their business.

The agent’s new employer has not commented on the matter, but the company’s lawyer said that they were aware of the non-compete clause and did not believe that it was enforceable.

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The case is set to go to court in the coming weeks, and the outcome could have implications for the use of non-compete clauses in the real estate industry and other sectors.