Eshleman v. General Accident Insurance Brokers Inc. 2012

William Eshleman worked through his incorporated company Eshleman Agencies

Ltd. and then sold his shares in that company to General Accident Insurance

Brokers (GAIB) Inc. He continued to work for them and as a term of his

employment contract agreed, upon leaving, not to work in the same industry for a

period of three years "within the metropolitan City of Edmonton." In 2000, Mr.

Eshleman left GAIB Inc. and went to work for an insurance company in Rosemond,

Alberta, a city immediately to the south and adjacent to the City of Edmonton.

GAIB sued William Eshleman claiming a breach of the restrictive covenant.

A. Explain what arguments are available to Mr. Eshleman to escape this

restrictive covenant.

B. Explain the likely outcome. In your answer consider whether this was an

employment or a business relationship, and what difference that would

make to the decision.