Question
Tammy was a new partner at Abacus Accounting Co. (Abacus), a large international full-service accounting and tax firm. It has offices all across Canada, in
Tammy was a new partner at Abacus Accounting Co. (Abacus), a large international full-service accounting and tax firm. It has offices all across Canada, in Vancouver, Calgary, Ottawa and Toronto. It offers a broad array of services, including general audit, tax and valuation services. After a few years as a partner at Abacus in Vancouver, Tammy felt burned out and wanted a change of pace.On Dec 1, 2020, she provided her resignation to Abacus and moved to a much smaller municipality: Chilliwack BC.On Feb 2, 2021, she accepted a job as an accountant at a small accounting firm, Animal Accounting (Animal), that specializes in veterinary practice accounting, a small but profitable niche in the accounting business. Veterinary practices have unique accounting rules and processes that only a handful of small accounting firms specialize in. In her first month at Animal, Tammy spent the majority of her time working on day-to-day operational accounting advice for Chilliwack Horse Care, a local veterinary practice. Chilliwack Horse Care had used Abacus accounting for a valuation of its business two years prior, when Chilliwack Horse Care was preparing to sell its business (a deal which did not ultimately happen).
Her contract with Abacus contained the following provisions:
(1) Following termination of employment, for a period of 24 months, the vice-president will not, without the prior written consent of Abacus, directly or indirectly, as principal, employee, officer or in any other manner whatsoever carry on or be engaged in executive, management, supervisory or strategic work or participate in, make decisions in respect of, direct, assist with, contribute to, advise on, provide consulting or other services in respect of any strategic management, supervisory or executive matters for any person or persons, firm, association, corporation or other business enterprise engaged in or concerned with or interested in any business which is competitive with the business of Abacus within British Columbia, Alberta, Ontario and Quebec.
(2) Following termination of employment, for a period of 36 months, the vice-president will not, without Abacus's prior written consent, directly or indirectly interfere with Abacus's relationship with, or engage in business with, any person who, on the date of the termination of the vice-president, was an employee or customer of Abacus or otherwise had a material business relationship with the Abacus.
Abacus is seeking an interlocutory injunction to enforce the clause in Artemis's contract and stop her from working at Animal.
Answer question using the format (Issue, Law, Application and Conclusion )
(a) What is an interlocutory injunction? (4 marks)
(b) Will Abacus be successful? Explain your answer with reference to applicable law. (11 marks)
(c)If Tammy had been let go from Abacus, in breach of her contract with them, rather than her leaving to work elsewhere on her own accord, would Abacus be able to stop her from working in violation of the restrictive covenant?(5 marks)
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