Andrew N. Sahai

The plaintiff, an IT service provider, sued the defendant independent contractors for breach of a non-competition clause after they declined to renew their sub-contracts and instead provided services to the RCMP through a competitor.

The court found that one defendant was not bound by the clause because it was inserted into an electronic renewal without notice, while the other defendant was bound but the clause itself was unreasonably broad and unenforceable.

The court held that the plaintiff had no proprietary interest in the identity of the client (the RCMP) and the restriction was an unjustified restraint of trade.

The action was dismissed.