The recent ruling from the Ontario Superior Court of Justice in
Stress-Crete Limited v. Harriman provides a helpful
reminder of the factors that courts will assess in determining the
enforceability of agreements not to compete with one's employer
or solicit its customers after departing.
Such agreements regarding post-employment activities are called
restrictive covenants. They are notoriously difficult to enforce
and often viewed with skepticism by the courts. This recent ruling
from the Ontario Superior Court of Justice provides a helpful
reminder of the key factors that courts will assess in determining
their enforceability.
The Facts
Mr. H worked as a Sales Manager with Stress-Crete Limited and
King Luminaire Company Inc. (collectively,
"Stress-Crete") — a company carrying on business
internationally in manufacturing and supplying lighting solutions.
After working for Stress-Crete for a number of years, Mr. H
resigned from his employment to accept a sales
