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Question 4

Patrick, a lawyer, was hired by Book LLP, a firm of lawyers in downtown Toronto. Patrick worked with the firm for 15 years and acquired an expert knowledge of tax law and made several connections with prominent accounting firms that referred work to Book LLP. Patrick worked almost entirely in the offices of the firm, the partners handled most negotiations with the firm's clients and referred the work to Patrick.

Patrick's contract of employment stated that fbr a period of two (2) years after the termination of his employment the employee will not engage in the professional practice of tax law either alone or in association with or as an employee of any person or firm within Metropolitan Toronto and will not accept work from any existing client of the firm or any referrals from any accountant who provided services to the firm's clients?⁹

Within a few days of terminating his employment with Book LLP, Patrick advised the firm's partners that he considered the restrictive covenant illegal and unenforceable and that he intended to open his own office as a tax lawyer within North York, part of Metropolitan Toronto, but which was 10 kilometres from the offices of Book LLP. Book LLP then sued Patrick to obtain an injunction to restrain him from breaking the contract and opening the ofifice.

Required: Identify the legal issues and state the principles that would affect the decision. Is there any additional information which would be relevant to your assessment of this case? What is the likely outcome of the application?

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