Great Lakes Graphite Inc GLKIF

RE:RE:RE:RE:RE:Lawsuit

[OrsonModesto]

As a general rule, the courts in Canada have considered clauses which restrict a former employee from working in their chosen field as contrary to public policy. The reason is that stopping someone from competing interferes with individual liberty and restricts open competition. Consequently, non-competition clauses included in regular employment contracts are difficult to enforce. The Supreme Court of Canada and the Ontario Court of Appeal have made it clear that they are only going to enforce non-competition agreements in the rarest of cases. What a court is more likely to do in regular employment situations is to enforce a non-solicitation agreement, which is designed to prevent a former employee from contacting the companys clients and employees for a defined period of time after the employment. Taking this into account, the only case I can see Ontario Graphite having that holds any sway would be against Jerry recruiting Mike to GLK (since they both worked at Ontario Graphite). I do not think a case made against the "client list" would be upheld, as Ontario Graphite would have a hard time proving they had any clients when no agreements were signed. All this can hopefully be refuted easily since it would have/should have been the CEO/Mr. Gorman that recruited both of them to GLK. In any case, the onus is on Ontario Graphite to prove any wrongdoing, and the courts have shown that it is not going to be easy. Just my thoughts...