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Restrictive Covenants

Clause that required veterinarian to pay former employer if she set up practice in same area enforceable

Jurisdiction: - British Columbia

In Rhebergen v. Creston Veterinary Clinic Ltd., 2014 BCCA 97, the majority of the BC Court of Appeal ruled that a non-compete type clause in an employment agreement that required a veterinarian to pay her former employer prescribed amounts if she set up her own practice in the same area within a three year total period, was enforceable.

The headnote / summary of the case is as follows:  read more »

"Top 10 Employment And Labour Law Cases In 2013" according to Cassels Brock & Blackwell

The law firm of Cassels Brock & Blackwell has issued their, "Top 10 Employment And Labour Law Cases In 2013". 

The cases on their list are set below. Note: the summaries with the cases are mostly my word-for-word cut and paste's from the original article:

1. Communications, Energy and Paperworkers Union of Canada, Local 30 v. Irving Pulp & Paper, Ltd., 2013 SCC 34

The Supreme Court of Canada ruled that random alcohol testing in the workplace is prohibited unless the employer can prove that, in addition to having a dangerous workplace, there are other pressing factors such as an overt substance abuse problem in the workplace.

2. Pate Estate v. Harvey (Township), 2013 ONCA 669

The Ontario Court of Appeal agreed that the Township employer had severely mistreated the dismissed employee, but reduced the punitive damages award from $550,000 to $450,000.  read more »

SCC: Restrictive covenant rules differ depending on whether tied to sale of business or employment contract

In Payette v. Guay inc., 2013 SCC 45,  the Supreme Court of Canada confirmed that the rules applicable to restrictive covenants differ depending on whether the covenants are tied to a sale of a business or to an employment contract. For more information on this case, see my previous entry here: "SCC to hear Quebec case on impact of sale of business, wrongful dismissal on enforceability of non-compete".

 

SCC to hear Quebec case on impact of sale of business, wrongful dismissal on enforceability of non-compete

Jurisdiction: - Quebec

The Supreme Court of Canada announced today that it will hear the appeal in Yannick Payette, Mammoet Canada Eastern Ltd., successor to Mammoet Crane Inc. v. Guay inc. (Que. C.A., Dec. 12, 2011) (34662).

As set out in the Court's summary, the key issue on appeal is whether the Quebec Court of Appeal erred in applying a non-competition clause despite the broad scope of the clause and the wrongful termination of employment relationship in light of the Civil Code regime.

By way of background, the Court's summary states:  read more »

Advertisement in trade magazine, launching of website establish prima facie breach of non-solicit agreement

Jurisdiction: - British Columbia
Sector: - Insurance

In Hub International (Richmond Auto Mall) Ltd. v. Mendham, 2011 BCSC 1780, the BC Supreme Court found that a former employee's advertisement for his new marine insurance company in a trade magazine and the launching of his new company's website established a prima facie breach of the non-solicit agreement he had entered into with his former employer, Hub International.

Specifically, the court stated:  read more »