The court dismissed an interlocutory injunction application seeking to stop a dental recruiter from working in Canada, finding no strong prima facie case or irreparable harm.
Court settled and clarified an interlocutory injunction in a dental franchise dispute, rejected the defendantsâ proposed definitional changes, and held the standard franchise agreement is within the injunctionâs scope.
The postâterm nonâcompetition clauses were held reasonable (twoâyear duration and the geographic limits as negotiated) and Bilomba demonstrated serious issues to be tried, irreparable harm, and that the balance of convenience favored interim relief against John Barrett, 3338255 Nova Scotia Limited and Creative Cresting Print and Promo Ltd.; accordingly an interlocutory injunction was granted against those defendants, while an injunction against Aaron Barrett was refused except to prohibit use of the client list.
The Court of Appeal upheld an interlocutory injunction enforcing a non-competition clause, but varied the order so it matched the clauseâs narrower scope.
The court found Christine Dibble was a dependent contractor, dismissed just cause, and awarded 12 monthsâ notice less avoided loss. The restrictive covenant and damage claims failed.
Leave to appeal from an interlocutory injunction was granted, but a stay was refused. The Court found arguable merit in the appeal, yet no irreparable harm.
Given the commercial context of a negotiated sale with legal advice and equal bargaining power, the court applied the presumption of validity to the non-competition covenant; the five-year duration and 15 km radius were reasonable to protect the purchased goodwill, the valuation and letter of intent contemplated such a covenant, and the appellant did not rebut the reasonableness finding, so the covenant is enforceable.