ARTICLE
16 January 2024

Non-Competition Clauses: Beware Of Abusive Legal Proceedings!

In a column published by Thomson Reuters, our lawyers Yanick Gagnon-Carbonneau and Valérie Allard discuss a Superior Court decision ..
Canada Antitrust/Competition Law

In a column published by Thomson Reuters, our lawyers Yanick Gagnon-Carbonneau and Valérie Allard discuss a Superior Court decision regarding a claim for damages for abuse of process brought against an employer by its resigning former employee, who complained that the employer had sued for an injunction based on a clearly invalid non-competition clause.

While the Jutras v. La Presse (2018) inc. decision was made in a particular procedural context, it nonetheless provides employers with a good example of the caution they should exercise before taking legal action against their former employees based on an alleged breach of a non-competition clause. To ensure that employers have a valid claim to compliance with such obligations, our professionals emphasize the importance of carefully examining non-competition clauses before applying to the courts to enforce them. Moreover, employers must ensure that non-competition clauses are valid when they are drafted, particularly with respect to determining the type of work they prohibit and the scope activities they cover.

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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