Melina Zaccaria

The moving parties brought a motion for leave to appeal the order of Akazaki J. dated January 2, 2024.

The Divisional Court dismissed the motion for leave to appeal and awarded costs to the responding party fixed at $5,000.

The court issued supplementary reasons regarding costs for an interim injunction motion.

The defendants sought to revisit the costs award, arguing that an offer to settle the motion should attract costs consequences under Rule 49.

The court found that the defendants' offer was insufficient as it did not fully address the plaintiff's concerns, particularly regarding non-solicitation, and that the plaintiff had obtained what it sought.

The court dismissed the defendants' request to revisit the costs, affirming the original costs award to the plaintiff.

The plaintiff, an insurance brokerage, brought a motion for interim injunctive relief to prevent former employees and rival brokerages from using confidential client information and soliciting clients.

The individual defendants resigned en masse and allegedly used client lists from the plaintiff.

The defendants argued an injunction was unnecessary due to an undertaking not to use confidential information.

The court applied the RJR-MacDonald test, finding a serious question to be tried, irreparable harm due to the alienation of confidential information, and that the balance of inconvenience favored the plaintiff.

An interim injunction was granted prohibiting the defendants from possessing, disclosing, using (including for solicitation), altering, destroying, copying, removing, or transferring the plaintiff's confidential information, including information acquired mentally.

A separate non-solicitation order was not granted, as the confidential information injunction was deemed sufficient.

Costs were awarded to the plaintiff.