Sales reps must pay former employer $130,000 for breach of fiduciary duty

Brothers started own business and solicited former employer’s customers, including while one brother was still employed with the company
By Jeffrey R. Smith
|Canadian Employment Law Today|Last Updated: 07/06/2016

An Ontario company has been awarded more than $130,000 from two former employees who went into business for themselves and solicited its customers, the Ontario Superior Court of Justice has ruled.

Jason Reia was hired as a commissioned sales representative in 1995 by Computer Enhancement Corporation (CEC), a vendor of memory products for computers in Mississauga, Ont. CEC didn’t manufacture parts, but rather served as a broker or middleman for its customers.

Jason had autonomy in putting together his own sales deals, with some terms such as credit limits approved by CEC’s owner. He wasn’t involved in management meetings or have any employees reporting to him. Over time, Jason became the “face of CEC” and was the only person at the company that most of his customers dealt with.