This appeal concerned the enforceability of a restrictive covenant in the context of a dentistry practice sale.
The appellants, Dr. Cooke, 6326471 Canada Inc., and Dr. B. Zaricniak Dentistry Professional Corporation, challenged a five-year, 15 km non-competition covenant after Dr. Cooke terminated his association and began working at a nearby practice.
They argued the trial judge erred in applying the burden of proof and in finding the covenant's duration and geographic scope reasonable.
The Court of Appeal dismissed the appeal, affirming that restrictive covenants in commercial contexts are presumed valid and attract less scrutiny than in employment, and upheld the trial judge's assessment of the covenant's reasonableness.
