The plaintiffs, Dentalcorp Health Services Ltd. and related entities, sought an interim, interlocutory, and permanent injunction against the defendants, Dr. Arsalan Poorsina and his professional corporations, for alleged breaches of non-competition and non-solicitation agreements.
These agreements stemmed from the plaintiffs' 2016 purchase of five dental clinics from Dr. Poorsina.
The court found that the plaintiffs had a strong prima facie case that the restrictive covenants were breached and were enforceable, given they were negotiated by sophisticated parties in the context of a business sale.
However, the motion for injunction was dismissed because the plaintiffs failed to demonstrate irreparable harm that could not be compensated by damages, and the balance of convenience favoured the defendants, particularly due to the plaintiffs' significant delay in seeking injunctive relief and the fact that the restrictive covenant's term was nearing its end.