Employment contracts often contain restrictive covenants, commonly known as “non-competition” or “non-solicitation” covenants. Such covenants are becoming more difficult to enforce by way of injunction as the recent decision of the Manitoba Court of Appeal in People Corporation confirms. The test to obtain an injunction is no longer whether there is a “serious issue to be tried”, the employer must now establish a “strong prima facie case”, which is a more onerous legal and evidentiary burden.
Pitblado’s Jeff Baigrie successfully argued the point before the Court of Appeal.
Read the ruling in its entirety here.