For the past 10 years, Gurpreet has been employed as an investment analyst at BucksCorp, one of

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For the past 10 years, Gurpreet has been employed as an investment analyst at BucksCorp, one of Canada’s largest financial institutions. Gurpreet signed an employment contract with BucksCorp that includes the following restrictive covenant:

For a period of two years after the termination of employment, as a result of either the employee’s resignation or dismissal with cause, the employee under this contract shall not conduct any business with any of BucksCorp’s clients or affiliates.

Gurpreet was unhappy in her work and felt that BucksCorp was treating her poorly. One day, Gurpreet received a very generous employment offer from SkyBank, a competing financial institution. Gurpreet resigned from BucksCorp and happily started working for SkyBank. Gurpreet works in an industry where clients develop very close relationships with their brokers. Soon after she began her new job, some of Gurpreet’s old BucksCorp clients contacted her, hoping to move their business to SkyBank in order to continue working with her. She agreed and the clients left BucksCorp. Angered by this new development, BucksCorp began a lawsuit against Gurpreet claiming that she breached the restrictive covenant in her employment contract. Discuss the factors that the court will consider when deciding whether to enforce this restrictive covenant. Can Gurpreet somehow avoid liability for BucksCorp’s claim?

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Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0132164429

4th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

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