Morley Shafron v. KRG Insurance Brokers (Western) Inc.
(British Columbia) (Civil) (By Leave)
Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.
Employment Law - Restrictive covenant - Remedies - Principles governing restrictive covenants in employment agreements - Doctrine of notional severance as a remedy for illegality in restrictive covenants in employment agreements - Whether Court of Appeal erred by applying principles applicable to restrictive covenants in commercial contracts to a restrictive covenant in an employment agreement - Whether Court of Appeal improperly applied doctrine of notional severance to interpret a restrictive covenant - Whether Court of Appeal erred by applying its own view of the reasonable geographic scope of a restrictive covenant - Whether Court of Appeal erred with respect to geographical reach and temporal scope of a restrictive covenant in assessing its reasonableness - Whether the Court of Appeal's judgment raises a conflict in case law.
The applicant agreed to a restrictive covenant when he sold his insurance agency and began a three year employment contract with the buyer. The buyer changed the name of the agency to the respondent's name. Three years later, the buyer renewed the applicant's employment in a new employment contract that included the respondent as a party. The contract contained a restrictive covenant. The buyer sold the agency to another buyer who also renewed the applicant's employment. The employment contract with the second buyer also contains a restrictive covenant. The applicant worked for the second buyer for a number of years and then went to work for a competitor after the contract with the second buyer ended. The respondent sought to prevent the applicant from working for the competitor.
Lower Court Rulings
Supreme Court of British Columbia
S010394, 2005 BCSC 1611
Court of Appeal for British Columbia (Vancouver)
CA33390, 2007 BCCA 79
- Date modified: