Your employees have access to all kinds of sensitive company
information. But what can you do if they leave and use that
information to unfairly compete against your company? An
Ontario court, in Corona Packaging Inc. v Singh, has
recently confirmed that you might be able to prevent that
competition, by obtaining an injunction. This decision
reinforces why such clauses are a good idea and how they can
prevent a company from losing key business.
Facts
Corona Packaging manufactures plastic bottles and has one major
customer, Guest Supply Inc. After a chance encounter at a
conference, the President of Corona Packaging, Keith Ratcliff,
became concerned that two former employees, Bradley Cascioli and
Kashmir Singh, were intending to compete for Guest Supply's
contracts. The two former employees had signed comprehensive
employment agreements including both a confidentiality clause and a
non-competition clause.
