The appellant, a former martial arts instructor, appealed a Small Claims Court judgment awarding the respondent $10,000 for breach of a non-competition agreement.
The appellant had signed an agreement prohibiting him from operating a competing school within a ten-mile radius for one year, but opened a competing business half a block away shortly after resigning.
The Divisional Court dismissed the appeal, finding the restrictive covenant valid, supported by consideration, and reasonable in temporal and spatial scope.
The court also upheld the damage award, noting the respondent's proprietary interest in student relationships.
