A financial advisor sued his former business associate and the associate’s corporation for breach of contract following termination of their business arrangement.
The defendants alleged that the advisor breached an exclusivity clause by selling investment products of a competing financial institution outside the agreed distribution structure and brought a counterclaim for damages.
The court found that the advisor had violated the contractual clause prohibiting the transfer of business outside the firm and had also breached fiduciary obligations.
The defendants were therefore entitled to terminate the contract.
However, the counterclaim was dismissed as statute‑barred under the Limitations Act, 2002 because it was commenced outside the applicable limitation period.