This case addresses a contractual dispute between a midwifery practice group (AMMA) and three former associate midwives regarding a clause requiring the withdrawal of hospital privileges upon termination of their agreements.
The court examined whether the clause applied to an expired contract, whether privileges were 'held through' the practice group, and if the clause constituted an unreasonable restraint of trade.
The court found the 'termination' clause ambiguous and, applying contra proferentem, ruled it did not apply to an expired contract.
However, it found that privileges were indeed 'held through' the practice group for the purpose of the clause.
The court also determined that the clause was not a restraint of trade under Ontario's formalistic approach, as it did not prohibit competition but merely required the withdrawal of privileges obtained through the association.
The application was dismissed against one respondent (whose contract expired) but allowed against the other two (whose contracts were terminated).