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Restrictive Covenants

Update on when a company can enforce an employment contract following various corporate transactions

Jurisdiction: - British Columbia

In Yellow Pages Group v. Anderson, 2006 BCSC 518, and the cases cited therein, the Court set out the law on when a company can enforce an employment contract (including severance provisions and restrictive covenants) following various corporate transactions:  read more »

Non-competition and non solicitation clauses in employment contracts

Jurisdiction: - British Columbia - Ontario

In Lyons v. Multari (2000), 3 C.C.E.L. (2d) 34, the Ontario Court of Appeal, citing the Supreme Court of Canada's decision in Elsley v. J.G. Collins Insurance Agencies Ltd., [1978] 2 S.C.R. 916, stated that, in an employment relationship context, only in "exceptional" cases will the courts enforce a non-competition clause if a non-solicitation clause would adequately protect the employer's interests .  read more »

"Quebec court strikes down non-competition clause"

Jurisdiction: - Quebec

Lawyer Jock Climie has written a legal brief entitled "Quebec court strikes down non-competition clause", which summarizes the (English language) decision of the Quebec Superior Court in Positron Public Safety Systems Inc. v. Cardoso, 2005 CanLII 28827 (QC C.S.).

The employee's duty of fidelity and good faith

Jurisdiction: - British Columbia

In a recent case - Axiom Services Ltd. v. Weigert, 2005 BCSC 145 - the B.C. Supreme Court discussed an employee's duty of fidelity and good faith, both during the employment relationship and after, in relation to clients and client lists. The court noted that:  read more »

"Restrictive Covenants and Fiduciary Duty"

Gary Catherwood, a lawyer in the Employment, Labour and Human Rights Department at Fasken Martineau DuMoulin LLP, has written a paper entitled "Restrictive Covenants and Fiduciary Duty" (November 2003).

"Common Employment Pitfalls Facing Technology Companies"

David Little, a lawyer at Fraser Milner Cagrain, has written a newsletter article entitled, "Common Employment Pitfalls Facing Technology Companies" (October 2003).

Payment made to individual for non-compete in context of share purchase transaction not subject to income tax

Sector: - Manufacturing

In Manrell v. The Queen, 2003 FCA 128, the Federal Court of Appeal ruled that a payment made to an individual for a personal non-compete restriction in the context of share purchase transaction was not subject to income tax.

This Tax Update ("Court says Non-Compete Payment is Non-Taxable") by lawyers at Davis & Company discusses the decision.

"Post Employment Competition and Customer Solicitation"

A lawyer at Clark Wilson, a Vancouver, BC law firm, has written a paper entitled "Post Employment Competition and Customer Solicitation" (2001). The paper's Table of Contents sets out the following topics:  read more »