Shafron v. KRG Insurance Brokers (Western) Inc. – Supreme Court of Canada – January 23, 2009

Ambiguous terms in a restrictive covenant will not be remedied through notional severance and only narrowly through blue-pencil severance.

The recent Supreme Court of Canada decision on January 23, 2009 in Shafron v. KRG Insurance Brokers (Western) Inc. [2009] 1 S.C.R. 157 (“Shafron”) demonstrates the court’s reluctance to alter ambiguous terms in a restrictive covenant. Although the doctrine of severance may be applied in some cases, such amendments will only occur in very limited circumstances.

In Shafron, the employee was employed by the employer as an insurance salesman. read more »

RBC Dominion Securities Inc. v. Merrill Lynch Canada Inc. – Supreme Court of Canada – October 9, 2008

There is no general duty prohibiting employees from competing with a former employer after their employment ends.  read more »