Unable to establish a prima facie case

An employer must prove irreparable harm to restrain a former employer from competing against it
|Canadian Employment Law Today

In 1993 Stephen Abott and Hersh Spiegelman founded Telehop Communications Inc., whose business consisted of providing long-distance telephone services. The company made a public offering of its securities in 1997, and in connection with the public offering Mr. Spiegelman and Mr. Abott signed employment agreements dated Dec. 30, 1996. Prior to this they did not have an employment agreement.

The employment agreement contained provisions dealing with non-competition, non-solicitation and use of confidential information. The non-competition clause provided that Mr. Abott would not provide consulting services or otherwise be concerned with any business which competed with the business of Telehop in Ontario for a period of two years “or such lesser amount of time as a Court of competent jurisdiction may determine is more reasonable” from the date of termination of his employment.

In early 2001 Mr. Abott ceased to be an employee of Telehop. He subsequently commenced an action against Telehop for constructive dismissal.