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The latest Ontario defeat for non-competition covenants

Readers of this blog have read of the difficulty encountered by employers in Ontario in drafting and enforcing non-competition covenants. The obstacles to enforcing such covenants were highlighted in a decision of the Superior Court released on April 5, 2013, the employer was faced with a concerted effort by three of its employees to open a competitive business within its market…

 

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Navigating the minefield: Court of Appeal reiterates distaste for restrictive covenants

Hunter Harrison, the former Chief Executive Officer of Canadian National Railway (CNR), faces a dilemma in dealing with his obligations under a non-compete covenant to his former employer. Harrison is being pursued by CNR competitor Canadian Pacific Railway to assume the position of CEO, but taking that position might violate the non-compete agreement.

 

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