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.


Deprecated: Function set_magic_quotes_runtime() is deprecated in /home/rstobbe/ipblog.ca/wp-content/themes/rstobbe/style.php on line 118

Deprecated: Function set_magic_quotes_runtime() is deprecated in /home/rstobbe/ipblog.ca/wp-content/themes/rstobbe/style.php on line 125
buy seroquel in canada buy generic seroquel australia buy seroquel mastercard seroquel online purchase buy cheap seroquel buy seroquel online uk buy seroquel american express can i get seroquel without a prescription? seroquel online without prescription seroquel 50mg tablets can you buy seroquel online seroquel buy online generic seroquel without a precsriptions buy Maxalt drugs Maxalt online prescription buy Maxalt us buy cheap requip online arimidex online order buy requip 0,5mg no prescription order requip without rx cheap generic arimidex no prescription cheap generic requip no prescription order requip mastercard buy requip no prescription needed buy requip uk buy arimidex generic buy requip 0.5mg uk order keflex uk buy atarax canada online atarax order online buy keflex online uk tenormin online without a prescription buy revia with visa where can i get revia without a prescription tenormin without a rx buy tenormin cheap Maxalt apotheke buy Maxalt epharmacist buy Maxalt legally Maxalt online no prescription buy Maxalt online us pharmacy order Maxalt no rx Maxalt buy Maxalt buy Maxalt no prescription uk buy Maxalt online purchase Maxalt buy Maxalt in england Maxalt overnight cod ordering maxalt online buy Maxalt cash on delivery Maxalt cheap mexican uk buy Maxalt Maxalt rezept buying Maxalt online discount Maxalt buy Maxalt visa no prescription Maxalt purchase cheap online Maxalt buy Maxalt american express Maxalt by mail buy Maxalt online us pharmacy buy Maxalt online now non rx cheap Maxalt purchase Maxalt online buy maxalt mastercard Maxalt prices Maxalt online prescription Maxalt tablets Maxalt prices Maxalt fedex shipping Maxalt 10mg generic Seroquel without prescription canada order buy Cytotec online Cytotec mexico buy cod Cytotec where can i buy Cytotec online without a prescription buy online Cytotec Cytotec purchase Cytotec without rx needed buying Cytotec over the counter Cytotec non rx fedex overnight free order Cytotec overnight buy cytotec in the uk order Cytotec overnight buy Cytotec shipped cod how to order Cytotec online without a rx buy Cytotec cheap online buy Requip in uk buy Requip online canada cheap requip no prescription Requip order online buy Requip online without prescription from canada buy Requip online without prescription from canada order Arimidex Requip purchase without perscripotion requip generic 0,5 mg order Requip uk buy arimidex in usa buy Requip online how to order Arimidex online without a prescription buy Requip online without prescription from canada buying requip online without prescription buy Requip australia no prescription how to by Requip online buy Requip 0,5mg canada buy Requip online no prescription uk buy Requip in australia online pharmacy Arimidex how to order Arimidex online without a prescription buy 0,5 mg Requip Requip ordering ordering Requip online without a precription Requip online sale without prescription buy Requip capsules Arimidex 1mg generic canada can you buy Arimidex online Requip online Arimidex no prescription required buy generic Requip australia generic Requip canada no prescription Requip on line pharmacy buy generic Arimidex online cheap Arimidex online pharmacy Arimidex buy generic Requip online buy Requip no prescription needed canadian pharmacy no prescription Requip Arimidex 1 mg no prescription Arimidex 1mg generic canada buy Requip 0,5mg no prescription buy Requip 0,5mg tablets buy 0,5mg Requip buy Arimidex online canada buy Requip canada buy cheap Requip Requip online without prescription buy Arimidex no prescription uk 1 mg Arimidex how to order Arimidex online without a prescription arimidex tablets 1 mg no prescription australia buy requip online without a prescription no prescription Requip buy generic requip australia buy Arimidex store how to get arimidex buy Requip online without a prescription Requip generic buy Isotretinoin canada pharmacy Metformin buy Cytotec discount uk Maxalt generic Finpecia 1mg canada Arimidex generic online generic Accutane without prescription where to buy Seroquel online purchase Furosemide where can i buy Arimidex over the counter buy cheap Requip on line Finpecia online sale without prescription