Court says working for a competitor isn’t ‘entering into competition’

Casselman v. Goodall Rubber Co. of Canada Ltd., 2003 CarswellMan 526 (M.B. Q.B.)

In November 1998, Goodall Rubber fired William Casselman without cause and paid him eight weeks’ salary in lieu of notice. They agreed to pay him another 44 weeks’ salary, which added up to $53,815, after he signed an agreement that he would not enter into competition with Goodall for a year after his termination.

A month after he was fired, Casselman started working for one of Goodall’s competitors. Goodall let Casselman know they would not be paying him.

The court ordered Goodall to pay, stating that “entering into competition” means starting up a competitive business, not being hired by an existing firm. Therefore the court decided Casselman did not breach the terms of his agreement. Casselman was awarded the $53,815 plus interest and costs.

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