Jardine Lloyd Thompson v. Fogal et al.

Jardine Lloyd Thompson v. Fogal et al.

On the affidavit record the restrictive covenants were prima facie reasonable and enforceable, there was prima facie evidence Fogal breached them by contacting and facilitating transfer of JLT clients, damages would not adequately compensate JLT for loss of goodwill and niche market value, and the balance of...

Source-derived case information.

Citation
2007 BCSC 271
Parties
Applicant/plaintiff: Jardine Lloyd Thompson Canada Inc.; Respondent/defendant: Jason Fogal; Respondent/defendant: Axis Insurance Managers (2005) Ltd. and Axis Insurance Managers Inc.
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
28 February 2007
Procedural Posture
Employment Contract Interlocutory Injunction / Interlocutory Injunction Hearing
Outcome
Interlocutory injunction granted with undertaking as to damages
Legal Topics
Non Competition, Non Solicitation, Constructive Dismissal, Goodwill, Confidential Information, Fiduciary Duty, Balance of Convenience, Irreparable Harm
Source Language
english
Employment Law Contract Law Equity Injunctive Relief Non Competition Non Solicitation Constructive Dismissal Goodwill Confidential Information +3 more

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Parties

Jardine Lloyd Thompson Canada Inc.

Applicant/plaintiff

Jason Fogal

Respondent/defendant

Axis Insurance Managers (2005) Ltd. and Axis Insurance Managers Inc.

Respondent/defendant

Procedural Posture

Employment Contract Interlocutory Injunction / Interlocutory Injunction Hearing

Legal Issues

  1. 1 Are the post-employment restrictive covenants enforceable?
  2. 2 Did Fogal breach the restrictive covenants by soliciting or doing business with former clients?
  3. 3 Is JLT entitled to interlocutory injunctive relief?

Ratio Decidendi

On the affidavit record the restrictive covenants were prima facie reasonable and enforceable, there was prima facie evidence Fogal breached them by contacting and facilitating transfer of JLT clients, damages would not adequately compensate JLT for loss of goodwill and niche market value, and the balance of convenience favoured preserving the status quo; accordingly an interlocutory injunction was granted on terms and until January 10, 2008 or final disposition.

Court Disposition

Interlocutory injunction granted with undertaking as to damages

Orders

  • Until final disposition or January 10, 2008, Jason Fogal is restrained from directly or indirectly soliciting or seeking to procure orders for business from any Client or Prospective Client of JLT with whom he had dealings (other than minimal dealings) from January 10, 2006 to January 10, 2007.
  • Until final disposition or January 10, 2008, Jason Fogal is restrained from directly or indirectly doing business with any Client or Prospective Client of JLT with whom he had dealings (other than minimal dealings) from January 10, 2006 to January 10, 2007.