Measures For Employers Who Are Victims Of Unfair Competition And Theft Of Confidential Information

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On February 22, 2012, the Superior Court issued orders against two employees and a competitor in a matter involving unfair competition.
Canada Employment and HR

On February 22, 2012, the Superior Court issued orders against two employees and a competitor in a matter involving unfair competition.

The plaintiff, who in this particular case was the employer, obtained a safeguard order against two former employees and their new employer, a competing company, which stops them from using confidential information which they had illegally obtained while the two employees were employed by the plaintiff, and which prohibits them from competing for a reasonable period of time.

The Honourable Justice Chaput granted the requested orders based on the principles of unfair competition and the duty of loyalty provided for at Article 2088 of the Civil Code of Quebec.  

In addition to their request for a non‑solicitation order, the plaintiff also requested access to the defendant's computers and email accounts by a forensic computer analyst, in order to identify information and confidential documents belonging to them. The judge granted this order, giving legal representatives access to documents on an "attorney's eyes only" basis.

The granting of such an order is an attractive solution to protect confidential information which may have been transferred electronically to a competing company. In view of the proliferation of information resulting from the use of new technologies, there is a need for appropriate and contemporary orders such as those issued by the Honourable Justice Chaput.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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