Non-competition clause struck down
Two former employees of an Ontario company can work for a competitor despite an agreement to the contrary, but they can’t contact the company’s clients for one year or disclose information about the company, according to the Ontario Superior Court of Justice.
Rob Bryans and Adam Kennedy signed a proprietary rights agreement when they joined Trapeze Software that stated they could not work for a competitor or solicit Trapeze clients for 12 months nor disclose confidential information.
The two men resigned in late 2006 to accept positions with a company they claimed was not a competitor.
After they resigned, Trapeze requested an injunction enforcing the non-competition clause. The court found the non-competition clause was not reasonable but ruled the other clauses were.
Rob Bryans and Adam Kennedy signed a proprietary rights agreement when they joined Trapeze Software that stated they could not work for a competitor or solicit Trapeze clients for 12 months nor disclose confidential information.
The two men resigned in late 2006 to accept positions with a company they claimed was not a competitor.
After they resigned, Trapeze requested an injunction enforcing the non-competition clause. The court found the non-competition clause was not reasonable but ruled the other clauses were.
