Far North property manager fined $2000 for breach of settlement

A Far North property manager has been fined $2000, by the Employment Relations Authority, for breaching settlement confidentiality.

What was meant to be an email between two women has left a Far North property manager with a $2000 fine, for being in breach of the non-disparagement and confidentiality terms of the settlement agreement.

Former Far North Circle Real Estate Limited (FNCREL) / Ray White Kaitaia employee Wendy Brown appeared before the Employment Relations Authority (ERA) for breaching a 2021 settlement agreement with her former employer.

Brown was employed by FNCREL, as a property manager, for just over six months in 2020. Since then, she has run her own property management business.

On February 24, 2021, Brown and FNCREL signed an agreement to settle an employment relationship problem. The agreement included clauses saying the terms of the settlement were confidential to the parties and that neither party shall “make disparaging remarks about the other”.

On October 9 Brown sent an email to a Ms R with the following comment: “If you are thinking of getting [FNCREL] to manage your properties pleased be warned – you are a fool – I left my employment with them to start up by own agency because they treat owners as numbers and revenue, don’t give a s**t about owners – it’s all about numbers and money for them”.

FNCREL made an application to the ERA on October 25 for a compliance order and a penalty against Brown, saying she had breached the terms of the agreement by criticising the company to one of its clients and by another comment that mentioned information intended to be confidential.

“She also referred to a payment made to her under one of the confidential terms of the settlement agreement. She repeated that reference in an email to the same person on October 18,” the judgment read.

“FNCREL also noted that Ms Brown had been found to have breached the non-disparagement clause on a previous occasion. An authority determination issued on August 10, 2021, ordered Ms Brown to pay a penalty of $1000 for that breach and to comply with the settlement agreement.

“The order on that occasion said: Ms Brown must also refrain from making disparaging remarks about [FNCREL]. She is able to promote her own business and the quality of its services without denigrating her former employer. Replying to FNCREL’s latest application for a compliance order Ms Brown said her comments to Ms R were ‘made in confidence and privately’.”

The judgment said that Brown stated she had a friendly business relationship with Ms R since 2021. She had managed two properties for her and had also rented a unit from Ms R for use as an office. However, for reasons Ms Brown said she was not told, Ms R had abruptly decided to cancel her contract with her.

“Ms Brown said the comments she then made to Ms R were ‘in a confidential email for [Ms R]’s eyes only … not made in the public domain’.

“Ms Brown said she wrote the email when she was feeling frustrated that Ms R would not communicate with her about why she had ended their business relationship. Later that same day she sent Ms R a further email apologising for the harsh tone of her earlier message.”

FNCREL managing director Sean Stratton said he could not say much but was “happy with the process and the outcome of the hearing”.

“It is also pleasing that the ERA has upheld and reinforced the terms of the original settlement agreement.”

Brown said she was not able to say anything on the decision.

“While I would be happy to say something, based on the conditions and the outcome I am not allowed to.”

The authority said Brown, having entered into the mutual obligations of the terms set out in the 2021 certified settlement agreement, “must comply with those terms, including by not making disparaging remarks about FNCREL and by observing the confidentiality of other terms”.

ERA ordered that she pay $2000 as well as filing fees.

“On recovery of the penalty, one half must be paid to FNCREL with the remainder to be paid to a Crown Bank Account.”