OEB International Ltd. v. Leyden

1995 CanLII 7332 (ON SC)Decided Employment contract

Non-Competition Agreement Dispute: Employee's Part-Time Employment with Former Client

Summary

A case involving the interpretation of a non-competition agreement and best efforts clause in an employment contract. The defendant accepted part-time employment with a former client, and the court examined whether this constituted a breach of the non-competition agreement or fiduciary duty. The restrictive covenant was interpreted as applying only to employment with competing public relations businesses, and the defendant was found to have fulfilled his best efforts obligations.

Outcome

No breach of contract or fiduciary duty was established, and rescission was unavailable due to lack of financial loss.

Key Factors

  • non-competition agreement
  • restrictive covenants
  • best efforts clause
  • fiduciary duty
  • employment contract interpretation

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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.