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Digest of the Week | Non-Compete Clause

Digest of the Week | Non-Compete Clause

Quebec Court dismisses application for injunction because non-compete clause did not apply in context of economic dismissal



Travelbrands Inc. c. Kijek
263 A.C.W.S. (3d) 392, 2016 QCCS 125, 2016 CarswellQue 253, EYB 2016-260989
Cour supérieure du Québec



EMPLOYMENT— Duties of employee — General

Employee had worked in executive position at applicant travel agency — Employee had been dismissed for economic reasons in restructuring under Companies’ Creditors Arrangements Act (Can.) — Employee had accepted position as president at rival travel agency — Employee had non-compete clause in his employment contract with former employer — Employer brought application for injunction requiring that former employee cease working for rival company in accordance with non-compete clause — Application dismissed — Employer did not have apparent right to injunction since economic dismissal did not constitute serious grounds for dismissal and hence non-compete clause may not take effect — Employer did not demonstrate irreparable harm from not granting injunction — Urgency was not demonstrated by employer.
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