2018218 Ontario Limited v. Realty Specialists Inc.

2019 ONSC 150 (CanLII)Decided Employment contract

Security for Costs in Employment Covenant Dispute

Summary

This is a procedural ruling on a motion for security for costs in a dispute involving restrictive covenants and breach of employment agreements. The court ordered the corporate plaintiff to post security for costs due to insufficient assets, awarding fixed costs to the defendants.

Outcome

Security for costs ordered; costs of motion awarded to defendants

Award

$60,000 and $45,000 in security for costs; $7,500 costs awarded to each set of defendants

Key Factors

  • security for costs
  • restrictive covenants
  • breach of employment agreements
  • corporate plaintiff
  • insufficient assets

Related Cases

Ballance It Inc. v. Lessard

2026 ONSC 5148 (CanLII) · 2026-09-10

Employment Contract: Interlocutory Injunction Refused

This interlocutory proceeding addressed whether the employer established a strong prima facie case to restrain a former employee from breaching non-solicitation and confidentiality obligations under their employment agreement. The court assessed the reasonableness of restrictive covenants and the handling of confidential information on personal devices, ultimately refusing the injunction as the prima facie case was not met.

Bellwether Investment Management Inc. v. Harbourfront Wealth Management Inc.

2026 ONSC 3622 (CanLII) · 2026-05-19

Enforceability of Non-Compete & Non-Solicit Clauses

This interlocutory proceeding addresses the enforceability of non-solicitation and non-competition clauses in an employment agreement. The court found a strong prima facie case that the defendant breached these restrictive covenants by soliciting clients and employees, leading to the issuance of an injunction. Additionally, a show cause hearing was ordered regarding alleged contempt of court for violating the interim injunction.

Cowan Insurance Group Ltd, v. Bennett

2026 ONSC 1413 (CanLII) · 2026-03-09

Non-Compete Injunction Dismissed: ESA s. 67.2 Analysis

This interlocutory motion sought an injunction to prohibit a former employee from soliciting the plaintiff's clients, alleging breaches of restrictive covenants. The court dismissed the motion, finding that existing contractual and court-ordered restrictions were sufficient to protect confidential information, that the balance of convenience favored the defendant, and that the requested restraint was inconsistent with the prohibition on non-compete agreements under the Employment Standards Act, 2000.

One World Logistics Group Corp. v. Sotiri

2025 ONSC 7224 (CanLII) · 2025-12-24

Dismissal of Injunction for Restrictive Covenants

An interlocutory injunction motion was dismissed where the plaintiffs failed to demonstrate a strong likelihood of success in enforcing non-competition and non-solicitation covenants. The court found the plaintiffs did not meet the evidentiary burden for irreparable harm or prove a likely breach of the restrictive covenants.

Green Life Inc. et al. v. 24K Maple Supply Inc. et al.

2025 ONSC 7356 (CanLII) · 2025-12-05

Injunction Refused: Expired Non-Compete & Confidentiality

This interlocutory motion concerned an application for an injunction to enforce confidentiality obligations and restrict competition, where the underlying non-competition clauses had expired. The court applied the RJR-MacDonald test, finding no serious question to be tried regarding the confidentiality of pricing and stock information which was largely public, and determined that damages were an adequate remedy. The motion was dismissed as the balance of convenience favoured the respondents and the relief sought would effectively shut down the competing business.

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.