The plaintiffs sought interlocutory injunctive relief restraining a former shareholder, director, and employee from using confidential information and soliciting customers following the sale of his shares in a closely held corporation.
The evidence indicated the departing fiduciary took electronic files containing proprietary customer information and immediately solicited key customers after the share sale.
The court found a strong prima facie case of breach of fiduciary duty and unfair competition, notwithstanding the absence of a non‑competition agreement.
Given the likelihood of irreparable harm through loss of goodwill and customer relationships, and the balance of convenience favouring the plaintiffs, injunctive relief was granted.
The injunction restrained the former fiduciary and his corporation from using confidential information and soliciting customers for a limited period pending trial.