Question2

Emilywas recently accreditedas a lawyerand startedemployment on June 1 with Maloney & Maloney, a firmoflawyersinNiagaraFalls.

Emilywas to work exclusively withthe firm'stax lawdepartment.

Emilymoved to NiagaraFalls and enrolledin the CPA tax program which runs for a period of 3 years at a cost of$10,000.00.

Emily's contractof employment statedthat for a period of 2 years after the terminationof her employment for any reason,"the employee will not engage in the professional practiceof tax law either alone or in associationwith or as an employee of any person or firm within the Regional Municipalityof Niagara and further,duringsuchtime,willnotacceptworkfromanyexistingclientofthefirm."

On October 15, the partners of Maloney & Maloney advised Emilythat the lawyers who practicedtax law were leaving the firm and they were terminatingher employment effective immediatelysince the firm would no longer be practicingtax law. They provided a cheque for 6 weeks pay as provided in the employmentagreement.

On November 1, Emily receiveda call from Siona,one of the tax lawyers she had worked with at Maloney &Maloney,offeringherajobinSt.Catharinesatthenewlocationthatthedepartinglawyershadselected. She contacted the managing partnerat Maloney & Maloney to provide her new address and was told that her employment contractprevented her from accepting the positionin St. Catharines and that Maloney & Maloney would sue her to obtain an injunction to restrainher from breaking the contractand acceptingemployment withthe new firm.Emily sensed that there was some animosity betweenMaloney & Maloney and the departinglawyers.

Emilycomestoyouforadviceandasks:

1. whethertheemploymentcontractisenforceable;

1. is she entitledto reimbursementfor the $10,000.00 she has paid for the course if she can't practicetaxlaw;

1. whether it makes a differencethat she was 17 years, 11 months old when she signed the employmentagreement.

Required:Identifythe legal issuesand discuss the legal principles that apply to this case and the likely outcome if Emily accepted the new employment offer and Maloney & Maloney sued. Is there any additionalinformationthatwouldberelevanttoyourassessment?