The plaintiff, an employment staffing agency, sought an interlocutory injunction against a former Director of Branch Operations and his new employer for alleged breaches of non-solicitation and confidentiality covenants.
The court found the Proprietary Information, Developments Non-Competition and Non-Solicitation Agreement to be valid and binding, rejecting the argument of lack of fresh consideration as the agreement was a condition of employment and presented on the first day.
A strong prima facie case was established for the former employee's solicitation of a major client (Cisco) and misuse of proprietary information (knowledge of a former colleague's value to Cisco).
However, no strong prima facie case was found for solicitation of another client (Bank of Montréal) or employee inducement.
The court determined that the plaintiff would suffer irreparable harm from loss of goodwill and market share, which would be difficult to quantify in damages.
The balance of convenience favored granting the injunction.