An employer sought an interlocutory injunction enforcing a non‑competition covenant against a former executive who joined a competitor.
The employer alleged breach of a 2008 employment agreement and argued that, where a clear negative covenant is breached, the usual injunction test should not apply.
The court applied a modified RJR‑MacDonald test and held the employer failed to establish a strong prima facie case because the covenant may have been superseded by a later agreement and was arguably overly broad and unnecessary to protect legitimate interests.
The court also noted that the inevitable disclosure doctrine is not recognized in Canada and that evidence of irreparable harm was speculative.
The motion to enjoin the employee and the competitor was dismissed, although the employee was ordered not to disclose confidential information or solicit the employer’s customers.
