This case involved an action for damages by the plaintiffs (2551965 Ontario Ltd. and Cabin Country Realty Ltd.) for alleged breach of restrictive covenants and interference in contractual/economic relations, and a counterclaim by the defendant (Harold Warkentin) for wrongful dismissal.
The court found that the employer had just cause to dismiss the defendant due to willful misconduct, including verbal threats, unprofessional internal notes, and a conflict of interest regarding a client transaction.
Consequently, the defendant's counterclaim for wrongful dismissal was dismissed.
The court also found the restrictive covenants in the share purchase agreement to be unenforceable against the defendant post-termination, as the geographic scope ("Northwestern Ontario") was overly broad and unnecessary to protect the plaintiffs' legitimate business interests.
As a result, the plaintiffs' claim for damages related to these covenants was also dismissed.
