Ben Aberant

The plaintiff employer brought a motion for partial summary judgment seeking to enforce a non-competition clause against a former software developer who resigned to work for a competitor.

The defendants brought cross-motions seeking a declaration that the clause was void.

The court found the matter appropriate for partial summary judgment.

The court held that the non-competition clause was overly broad in its scope of prohibited activities, geographic scope, and temporal scope, and was ambiguous.

The clause was declared unreasonable, unenforceable, and void ab initio.

An employer sought an interlocutory injunction enforcing a non‑competition covenant against a former executive who joined a competitor.

The employer alleged breach of a 2008 employment agreement and argued that, where a clear negative covenant is breached, the usual injunction test should not apply.

The court applied a modified RJR‑MacDonald test and held the employer failed to establish a strong prima facie case because the covenant may have been superseded by a later agreement and was arguably overly broad and unnecessary to protect legitimate interests.

The court also noted that the inevitable disclosure doctrine is not recognized in Canada and that evidence of irreparable harm was speculative.

The motion to enjoin the employee and the competitor was dismissed, although the employee was ordered not to disclose confidential information or solicit the employer’s customers.