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Insufficient Evidence To Enforce Non-Competition Clause

In 1003126 Ontario Ltd. V DiCarlo at issue was whether the court should grant an injunction enforcing a non-competition clause in an employment contract.  The Plaintiff hired the Defendant to work as a sales person for his medical spa clinics in 2007. 

In 2012 the defendant left the Plaintiff’s business and began working as the director of a different medical spa clinic. The parties disagreed on the contract that governed their employment relationship.  The Plaintiff claimed that the parties signed a sub-contract agreement that contained a non-competition clause that prohibited the Defendant from working or having any interest in a medical spa or weight loss centre business within a 20 mile radius of the Plaintiff’s locations for 24 months after the employment.

The Defendant claimed that he had never seen this agreement prior to the commencement of litigation and that he had signed a “sales staff employment agreement” that contained a non-competition clause that prohibited the Defendant from working or having any interest in a weight loss centre, and this did not include a medical spa. The Defendant’s position was that because he was working as the director of a medical spa clinic and not a weight loss centre, he was not in violation of the non-competition clause that he signed. The Court held that there was not sufficient evidence to determine which contract governed the parties’ employment relationship.

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