by Brian Smeenk
In an important recent decision, Ontario’s Court of Appeal has reconfirmed that noncompetition clauses will be enforced against departing employees only in exceptional circumstances. It allowed two insurance salespersons to take many of their clients to a competing insurance broker despite their contractual agreement to the contrary.
Tim Allan and Jeff Kienapple worked for H.L. Staebler Company Limited. They sold commercial insurance (property, casualty, and automobile) to businesses. Because they were unhappy with new management, they resigned and immediately began working in a similar capacity for Stevenson & Hunt Insurance Brokers.