Alberts et al. v. Mountjoy et al.
Fiduciary Duty Breach: Senior and Junior Employees Soliciting Clients Post-Resignation
Summary
A case involving a senior employee of an insurance agency who resigned and solicited clients of the former employer, raising the issue of whether senior employees owe a fiduciary duty not to solicit clients post-resignation. The court also addressed whether junior employees joining in the solicitation are subject to the same fiduciary duties and how damages for breach of such duties should be assessed.
Outcome
Senior employees owe a fiduciary duty to avoid soliciting clients of their former employer, even without a restrictive covenant. Junior employees who join in the solicitation are subject to the same obligations. Damages were assessed based on net loss of commissions, and punitive damages were not awarded due to the employer's contribution to the circumstances.
Award
Damages assessed based on net loss of commissions, considering the vulnerability of the employer’s client relationships. Punitive damages not awarded.
Key Factors
- fiduciary duty
- solicitation of clients
- breach of employment contract
- damages assessment
- employment obligations post-resignation
Related Cases
Cross v. Cooling Tower Maintenance Inc.
2025 ONSC 7203 (CanLII) · 2025-12-23Employment Contract Dispute: Summary Judgment and Lump Sum Payment
A case involving the interpretation and enforcement of a settlement agreement in an employment context. The court granted summary judgment, finding that the failure to disclose re-employment did not constitute repudiation, and ordered the payment of a lump sum. The court also dismissed a counterclaim for punitive damages.
Barnett v. Canadian Nuclear Laboratories Ltd.
2025 ONSC 6400 (CanLII) · 2025-11-17Employment Contract: Forum Selection Clause Validity and Enforceability
A civil procedure case examining the enforceability of a forum selection clause in an employment contract. The court found the clause valid and enforceable, despite the plaintiff's transition to a new employer and the defendant's arguments for a more appropriate forum in Manitoba.
Liggett v. Veeva Software Systems, Inc. and Veeva Systems Inc.
2025 ONSC 7010 (CanLII) · 2025-10-07Employment Contract Dispute: Termination Clause and Reasonable Notice
A case involving the enforceability of a termination clause under the Employment Standards Act, 2000, and the determination of reasonable notice for a senior product manager. The court also addressed the award of benefits and incentive compensation during the notice period.
McCoubrey v. Salesfloor Inc.
2025 ONSC 3739 (CanLII) · 2025-06-24Employment Contract Case: Commission Policies and Entitlements
A case involving the interpretation of employment agreements and commission policies. The court determined that the 2020 Commission Policy governed the plaintiff's entitlements and that the plaintiff was entitled to $61,228.28 USD in commissions for deals she was the effective cause of before her resignation.
Riva Plumbing Limited v. Ferrari
2025 ONSC 3219 (CanLII) · 2025-05-29Employment Contract Dispute: Pro-Rated Bonuses Awarded
A case involving former employees of a plumbing business who were accused of breaching fiduciary duties and non-competition clauses. The court ruled that there was no breach of duties as the employees did not compete during their employment or misuse confidential information. Additionally, the court determined that the employees were entitled to pro-rated bonuses under oral agreements despite resigning before the fiscal year-end.
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.