ITCAD, a vendor of record for the Ontario government, appealed a summary judgment decision awarding punitive damages to the respondent consultants for withholding their pay.
The consultants cross-appealed the motion judge's finding that they breached a non-competition clause.
The Divisional Court dismissed ITCAD's appeal, upholding the punitive damages award as ITCAD's conduct in withholding pay to force the consultants to sign with another vendor was unacceptable.
The Court allowed the cross-appeal, finding the non-competition clause unenforceable because ITCAD lost its vendor of record status and was using the clause to circumvent the government's decision, which was contrary to public policy.
