PARSONS v O’CONNOR [2021] NZHC 1047

PARSONS v O’CONNOR [2021] NZHC 1047

An employee/director is required to discover only those documents over which he has 'control' defined as an enforceable right to access and copy; documents held by an employer and subject to the employer's objection are not in the employee's control and need not be discovered by the employee. Employment-related...

Source-derived case information.

Citation
[2021] NZHC 1047
Parties
First Plaintiff: Michael Kenneth Parsons; Second Plaintiff: Green Shoots Holding Limited (as trustee of The Green Shoots Lifestyle and Education Trust); First Defendant: Paul Michael O'Connor; First Defendant: BHW Trustee 2017 Limited (as trustee of the O'Connor Family Trust); Second Defendant: Sally Jane Carey; Second Defendant: Andy Fox; Third Defendant: Datamine Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
12 May 2021
Procedural Posture
Oppression Claim Under Companies Act 1993 S 174 With Interlocutory Discovery Application Under High Court Rules / Application for Further Discovery / Interlocutory Hearing
Outcome
Application for further discovery partially allowed in respect of employment-related personal documents; remainder of application dismissed
Legal Topics
Shareholder Oppression, Further Discovery (r 8.19, R 8.27), Control Test for Document Discovery, Employee Access to Employer Documents, Non‑party Discovery, Privacy Act Access Rights
Company Law Civil Procedure Discovery Law Employment Law Privacy Law Evidence Shareholder Oppression Further Discovery (r 8.19, R 8.27) +4 more

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Summary, issues, holding and outcome

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Parties

Michael Kenneth Parsons

First Plaintiff

Green Shoots Holding Limited (as trustee of The Green Shoots Lifestyle and Education Trust)

Second Plaintiff

Paul Michael O'Connor

First Defendant

BHW Trustee 2017 Limited (as trustee of the O'Connor Family Trust)

First Defendant

Sally Jane Carey

Second Defendant

Andy Fox

Second Defendant

Datamine Limited

Third Defendant

Procedural Posture

Oppression Claim Under Companies Act 1993 S 174 With Interlocutory Discovery Application Under High Court Rules / Application for Further Discovery / Interlocutory Hearing

  1. 1 Whether an employee/director (Mr Parsons) can be required to discover and produce documents held by his employer or related third parties when the employer has instructed him not to disclose
  2. 2 Proper legal test for 'control' of documents under the High Court Rules and whether employee access equates to control
  3. 3 Extent to which personal employment documents are discoverable under the Privacy Act 2020

Ratio Decidendi

An employee/director is required to discover only those documents over which he has 'control' defined as an enforceable right to access and copy; documents held by an employer and subject to the employer's objection are not in the employee's control and need not be discovered by the employee. Employment-related documents containing the individual's personal information are discoverable because the individual has an enforceable access right under the Privacy Act 2020.

Court Disposition

Application for further discovery partially allowed in respect of employment-related personal documents; remainder of application dismissed

Orders

  • Within three weeks of the defendants clarifying the scope of documents in the first group, the plaintiffs are to file and serve an affidavit disclosing those employment-related documents and make them available for inspection subject to confidentiality safeguards
  • The remainder of the defendants' application is dismissed