Safety & HCM Post

Court Won’t Bar Ex-Employees from Wooing Firm Clients Until Lawsuit Ends

An insurance broker sued its former marketing VP and her technical assistant for violating their non-competes and asked the court to issue a preliminary injunction ordering them not to use the firm’s confidential information to solicit its clients until the case was decided. The court refused. First, it was far from certain that the court would find the non-competes in question enforceable, especially given their failure to define 2 key terms—”confidential information” and “client.” Second, there was no evidence the firm would suffer “irreparable harm” if the preliminary injunction wasn’t issued. Loss of clients is common in the insurance business and there was no proof that the clients lost to the VP and assistant would be substantial (or irrecoverable) enough to do any meaningful harm to the firm’s business [Knight Archer Insurance Ltd. v Dressler, 2019 SKQB 30 (CanLII), Jan. 25, 2019].

Bongarde Editorial

Bongarde Editorial

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