News
Arguing Ambiguities in Restrictive Covenants – The Pendulum Swings Back to Enforceability
One of the most-used strategies to argue that a non-compete or non-solicit provision is unenforceable is to point to any possible ambiguity in the wording used. In the leading Canadian decision, the Supreme Court of Canada held in J.G. Collins Insurance Agencies Ltd. v. Elsley Estate, 1978 CanLII 7 (SCC), that in order to be enforceable, the terms […] Read more
Economic Disincentives to Compete Found to be Restraints of Trade
The B.C. Court of Appeal’ decision last year in Rhebergen v. Creston Veterinary Clinic, 2014 BCCA 97, is both a win and a loss for employers seeking to restrain employees from competing with them post-employment. In both instances, the decision will have long-reaching effects over employer’s strategies to implement effective restraints and the courts’ decisions on enforceability. In […] Read more
Is Forfeiture of a Bonus for Resigning a Restraint of Trade?
Does the forfeiture of a bonus for leaving an employer constitute a restraint of trade? This question was recently put to the Ontario Supreme Court of Justice in Levinsky v. TD Bank, 2012 ONSC 5110. The Court’s ultimate response may encourage more employers to require forfeiture or repayment of bonuses to incent employee loyalty as […] Read more
Failure to Meet Irreparable Harm Test Sinks Both a Non-Solicit and Non-Compete Clause
As predicted earlier in this space, the British Columbia Court of Appeal’s decision inEdward Jones v. Voldeng, 2012 BCCA 295, is making it very difficult to enforce a non-solicit agreement in B.C. on an interim basis pending trial. In Hub International v. Redcliffe, 2012 BCSC 1280, one of the first decisions to applyEdward Jones, the B.C. […] Read more
