On a pre-trial application for an injunction, the B.C. Supreme Court refused to grant preliminary injunction to enforce “non-competition” and “non-solicitation” provisions in employment contracts of two key employees. Court ruled that the provision prohibiting defendants from soliciting people with whom they have had no prior dealings and who they would not necessarily have any way of identifying as customers of the plaintiffs was unclear and lacking in certainty.
The plaintiffs were in the business of sale of prescriptions and other medical supplies. The Court stated that a duty of fidelity, including a duty not to use or disclose the employer’s confidential information, is generally implied in employment contracts and survives the termination of those contracts. The Court granted an injunction restraining and enjoining the defendants from: a) directly or indirectly soliciting or enticing any employee of the plaintiffs to leave their employment with the plaintiffs for a period of one year; b ) using or disclosing confidential information, including customer lists and contact information, and information concerning packaging, marketing and distribution of the plaintiffs’ products.
Category Archives: Non-Competion Covenants
Injunction granted for Non-disclosure of Confidential Information, refused for Non-competition and “Non-solicitation
Non-Competition vs. Non-Solicitation Covenants
A non-competition clause restrains the departing employee from conducting business with former clients and customers whereas a non-solicitation clause merely prohibits the departing employee from soliciting their business. Generally, the courts will not enforce a non-competition clause if a non-solicitation clause would adequately protect an employer’s interests. A non-solicitation clause – suitably restrained in temporal and spatial terms – is more likely to represent a reasonable balance of the competing interests than is a non-competition clause.