The plaintiff, Graydon Cragg, funded and established a financial services business through his corporation, 1350369 Ontario Inc. The defendants, Tom Jarvis and Darren O'Halloran, managed the business and developed its client base.
In 2005, the defendants abruptly left the business, taking the client files and staff to set up a competing operation.
The court found that Jarvis and O'Halloran were employees and fiduciaries of the plaintiff's business, not independent contractors.
By taking the book of business without compensating the plaintiff, they breached their fiduciary duties and were unjustly enriched.
The court directed a business valuation to determine damages.
