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.
In yet another example of the reluctance of the Ontario Superior Court to restrict competitive activities of former employees, the Court rejected an employer’s request for an injunction…
The Ontario Superior Court re-affirmed the freedom of employees to leave their employer and set up a competitive business.
You arrive at the office Monday morning to discover that your Senior Vice-President of Marketing and three of your sales people have resigned and accepted jobs with your competitor. You quickly realize that this has the potential of seriously harming, if not destroying, the company’s business. Do you have any recourse against the departing employees or the company to which they have moved?