The appellants sold their manufacturing business to the respondents and signed a restrictive covenant prohibiting them from competing for five years after the sale or after terminating their employment, whichever was later.
Nine years later, the appellants resigned and started a competing business.
The respondents sued for breach of the covenant.
The Supreme Court of Canada upheld the Court of Appeal's decision that the covenant was clear, unambiguous, and enforceable.
The Court found the covenant reasonable between the parties and in the public interest, rejecting the appellants' arguments that the respondents' alleged monopolistic practices rendered the covenant void.
