Trade-Secrets and the Departing Employee

-

Concerned about departing employees who might have confidential information about your business and clients? Or maybe you are the ex-employee and you are unsure of where the line is drawn when departing one job to start another.

In Plaza Consulting Inc. v. Grieve et al , 2013 ONSC 5338 (CanLII), the court addressed an injunction application by QA Consultants, a Canadian company offering software testing and quality assurance services, against former employees and consultants who started a competing business. The court provides some guidance on how these matters are held, when ex-employees are accused of misappropriating confidential information and poaching customers. In this case, the court says:

  • Whether dealing with employees who allegedly misappropriate their former employer’s business methods in breach of a restrictive covenant or in breach of fiduciary duties, the employer must at the very least establish that it “has a proprietary interest that is entitled to protection.” Aon Consulting Inc. v Watson Wyatt & Co., 2005 CarswellOnt 3706, at para 16 (SCJ). Here, the court concludes that the confidential information in question is “highly generic”. Remember that “[a] trade secret cannot be within the realm of general skills or knowledge.”
  • A party who receives allegedly confidential information and who is accused of misusing it must have done so to the detriment of the party that provided the information in the first place. International Corona Resources Ltd. v Lac Minerals Ltd. 1989 CanLII 34 (SCC), (1989), 26 CPR (3d) 97, at 103(SCC). In this case, the court found that the information in question was not used to the detriment of the plaintiff.
  • In the case of the allegations of solicitation of former clients or employees of QA Consultants, the court indicated that, in these agreements, the restrictive covenants were sufficiently vague that the allegations made against the ex-employees were not “clear” breaches of those covenants. The vague definition in the agreements did not help the case. Ultimately, the injunction application was dismissed.

Remember to get advice on the restrictive covenants in employment agreements. Both employees, consultants and employers should understand the scope of confidentiality obligations and non-solicitation restrictions.

      Calgary - 07:00 MDT

No comments yet. Be the first.

Leave a reply

You must be logged in to post a comment.

i want to buy prednisone without a perscription order prednisone free next day airprednisone on line Buy accutane with visa where can i purchase synthroid 200 mcg mastercard without a prescription where can i purchase zithromax online purchase Buspar no visa online without prescription buy Atarax amex purchase cheap Atarax online buying Cytotec online lisinopril lisinopril buy lisinopril lisinopril buy Lisinopril cheap uk buy Lisinopril buy Lisinopril legally Metformin uk Metformin from india cheapest place to buy Metformin buy Metformin free consultation order generic Metformin Metformin drug buy Metformin pay cod Metformin no prescription where to buy finpecia (prednisone overnight without prescription|how to order prednisone online without a prescription|prednisone without prescriptions in usa|cheapest prednisone|buy prednisone over the counter|prednisone order online|cheap prednisone online no prescription|buy generic prednisone no prescription|prednisone buy cheap|prednisone generic|prednisone no prescription with mastercard|no prescription generic prednisone|prednisone no prescription needed|prednisone express online|purchase generic prednisone online|prednisone from mexico|prednisone online no prescriptions required from the US|prednisone cheap online canadian pharmacy|canadian generic prednisone no prescription|how to get prednisone online no prescription in 20 days|purchase prednisone online|prednisone generic sale|prednisone buy online without rx|wholesale prednisone|prednisone 40 mg without a prescription|prednisone without rx|prednisone without script|prednisone purchase canada|prednisone cheap online|b buy prednisone spain buy prednisone in the us purchase Buspar without prescription to ship overnight where to buy Amitriptyline without a prescription Premarin mexico valtrex generic pharmacy iframe Buy Valtrex from usa without a perscription purchase Maxalt without buy Metformin without a credit card buy Metformin no rx finpecia online pharmacy buy cheap valtrex without prescription free fedex delivery Valacyclovir Amitriptyline from india Premarin drug order cheap overnight Premarin online Maxalt purchase buy cheap generic prednisone online canada pharmacy no prescription buy prednisone oral Metformin online purchase buy Metformin doctor prescription Finpecia generic online online|Finpecia 1 mg order online|Finpecia generic vs propecia|Finpecia cost australia|buy generic Finpecia uk|purchase Finpecia uk|buy Finpecia online prescription|buy generic Finpecia 1mg|buy Finpecia|Finpecia online australia|buy Finpecia no prescription uk|order Finpecia 1mg|buy Finpecia cheap|Finpecia generic 1mg|Finpecia online prescription|Finpecia 1mg generic canada|Finpecia costco pharmacy|Finpecia 1mg india|Finpecia generic walmart|buy Finpecia no prescription forum|buy Finpecia online australia|Finpecia online uk) buy Metformin in united states online Metformin sale purchase Orlistat visa buy finpecia over counter cheap purchase Orlistat order no online rx Orlistat purchase Orlistat no visa without prescription buy on line Orlistat generic Orlistat prices online prescription Orlistat online prescription Orlistat medikament Orlistat buy Finpecia online|buy cheap Finpecia online|order Finpecia|Finpecia generic walmart|Finpecia online prescription|buy Finpecia 1mg online|Finpecia generic online|Finpecia costco price|order Finpecia online|buy Finpecia 1mg malaysia|purchase Finpecia uk|topical Finpecia buy|Finpecia 1 mg order online|Finpecia generic|buy Finpecia online canada|Finpecia 1 mg order online|Finpecia online india|Finpecia generic 1 mg|order Finpecia uk|Finpecia depression women|buy cheap Finpecia 1mg|Finpecia generic names|legal buy Finpecia online|Finpecia depression women|buy Finpecia 1mg india|Finpecia generic walmart|buy Finpecia 1mg online|Finpecia online india|buy Finpecia 1mg online|Finpecia 1mg tablets|Finpecia costco price|order Finpecia canada|buy Finpecia online australia|Finpecia dose hair|buy Finpecia online paypal|Finpecia 1mg|Finpecia 1mg for sale|Finpecia online uk|buy Finpecia uk|Finpecia 1mg vs 1mg|Finpecia generic walmart|Finpecia costco pharmacy|buy Finpecia online paypal|F finpecia online no rx finpecia with fedex buy finpecia next day delivery prednisone with no rx purchase Premarin without prescription to ship overnight where buy Premarin