Patel v. ITCAD Tech Inc.

2025 ONSC 1697 (CanLII)Decided Employment contract

Independent Contractor Non-Compete & Punitive Damages

Summary

This case addresses whether the plaintiff was an employee or independent contractor and the enforceability of a non-competition clause in their agreement. The court upheld the independent contractor relationship and found the 12-month non-compete restriction reasonable. Damages for breach of the non-compete were awarded, along with punitive damages for the withholding of funds.

Outcome

Independent contractor relationship upheld; non-competition clause enforced; damages and punitive damages awarded.

Award

$17,500 in damages for breach of non-competition clause; $15,750 in punitive damages.

Key Factors

  • independent contractor status
  • non-competition clause
  • reasonable notice
  • punitive damages
  • withholding of funds

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This is legal information, not legal advice. Ontario Severance is an educational tool. If you are facing a serious employment law matter, consult with a qualified employment lawyer in Ontario.