Tag: Restrictive Covenants

Court of Appeal for Ontario Considers Enforceability of Restrictive Covenants

· 1 min read

The Court of Appeal for Ontario has affirmed that if restrictive covenants are to be enforceable, they must be properly drafted. In Eagle Professional Resources Inc. v. MacMullin, the Court upheld the finding of a motion judge that “non-competition” clauses in the employment contracts of employees who left the plaintiff’s employ and joined a competitor…

Ontario Court of Appeal Decision Underscores Importance of Properly Drafted Restrictive Covenants

· 3 min read

A recent decision of the Court of Appeal for Ontario reinforces the importance of carefully drafting restrictive covenants and considering what evidence is necessary to succeed on a summary judgment motion. The claim arose when individual employees left their employer to work for a competitor. The former employees were all subject to the same “non-competition”…

The Latest Word on Restrictive Covenants from the Supreme Court of Canada

· 8 min read

The law on restrictive covenants is all about context. Restrictive covenants typically arise in a sale of a business agreement or an employment contract. If you are drafting a restrictive covenant or determining whether a covenant is enforceable, you must be aware of the context because the applicable legal principles vary based on the context….

Recent Decisions from Courts of Appeal Provide Guidance on Restrictive Covenants

· 2 min read

In a time where employees are unlikely to remain with one employer throughout their working lives, employers often seek to put in place restrictive covenants to limit departing employees from competing with them, soliciting their clients/customers or using confidential information obtained in the course of their employment. The scope of restrictive covenants has recently been…

Alberta Court of Appeal Considers Restrictive Covenants and Fiduciary Duties

· 4 min read

In Evans v. The Sports Corporation, the Alberta Court of Appeal provides some important guidance on what classes of employees will be considered fiduciaries and what type of conduct will constitute solicitation of clients. Richard Evans was employed for six years by The Sports Corporation (“TSC”) as a sports agent responsible for TSC prospects and…

Court of Appeal for Ontario Finds Restrictive Covenants Unreasonable and Unenforceable

· 1 min read

In Martin v. ConCreate USL Limited Partnership, a decision released yesterday, the Court of Appeal for Ontario determined that the restrictive covenants included in sale of business agreements were unenforceable.  Among other things, the Court found that the duration for the covenants was unreasonable because it was “for an indeterminate period, and there is no fixed,…

Important Direction on Restrictive Covenants from the Court of Appeal for Ontario

· 6 min read

Restrictive covenants in an employment context are intended to control an individual’s competition and conduct in relation to her employer’s business after the employment relationship ends. These covenants will only be upheld by the courts if they are reasonable as between the parties and reasonable in light of the broader public interest in discouraging restraints…