Melinda Layton

Following a trial where the defendants successfully defended against the plaintiff's claim regarding a restrictive covenant, the defendants sought costs of $163,328.87.

The plaintiff argued for a reduced partial indemnity award of $53,191.82, citing an unproven fraud allegation by the defendants.

The court declined to award substantial indemnity costs but noted the importance of the indemnity principle given the employment-like relationship.

Costs were fixed at $110,000 inclusive of fees, disbursements, and HST.

The plaintiff, an IT service provider, sued the defendant independent contractors for breach of a non-competition clause after they declined to renew their sub-contracts and instead provided services to the RCMP through a competitor.

The court found that one defendant was not bound by the clause because it was inserted into an electronic renewal without notice, while the other defendant was bound but the clause itself was unreasonably broad and unenforceable.

The court held that the plaintiff had no proprietary interest in the identity of the client (the RCMP) and the restriction was an unjustified restraint of trade.

The action was dismissed.