BCCA Eyes Enforceability Of Restrictive Covenant In IRIS Appeal

Restrictive covenants are often a key component of employment agreements and commercial transactions. Enforceability, however, can be challenging, especially in the employment context. The B.C. Court of Appeal's recent decision in IRIS The Visual Group Western Canada Inc. v. Park, 2017 BCCA 301, is a good reminder and provides valuable insight into several related legal principles. The implications of the decision will be of interest to many B.C. employers who rely on restrictive covenants or who are contemplating doing so.

Background

IRIS The Visual Group Western Canada Inc. ("IRIS"), an eye care services provider and eyewear products vendor, operated its business by entering into Optometric Services Agreements ("OSAs") with individual optometrists to deliver its services and products to customers. IRIS concluded such an agreement with a certain Dr. Park. In the agreement, Dr. Park agreed and acknowledged she would provide services as an independent contractor.