28 Jul 2023
Accurate Material Testing Ltd. v Keshavarzi
In the case of Accurate Material Testing Ltd. v Keshavarzi dated July 28, 2023, plaintiff Accurate Material Testing Ltd. ("Accurate") filed an application for an interlocutory injunction against defendants Prima Testing and Engineering Ltd. ("Prima") and Hassan Keshavarzi to prohibit them from providing services to certain companies and entities and from soliciting business from Accurate's suppliers, agents, or customers with whom Mr. Keshavarzi had dealt during his employment with Accurate. Accurate also sought an affidavit confirming that the defendants had no further copies of any records downloaded from Accurate's customer management database. The underlying action pertained to the misappropriation of Accurate's confidential client information.
Accurate claimed that Mr. Keshavarzi, a former employee, had violated a non-competition and confidentiality clause in the shareholders' agreement. Mr. Keshavarzi and Mr. Rastbin engaged in negotiations regarding the sale of shares, and eventually, Mr. Keshavarzi sold his shares to entities controlled by Mr. Rastbin and Mr. Akhlaghi. After the sale, Mr. Keshavarzi resigned from Accurate and started a competing materials testing company, Prima
The court dismissed Accurate's application. The parties were granted leave to submit written submissions regarding costs. The defendants' submissions were due within 30 days of the court's decision, followed by the plaintiff's reply submissions within 15 days after receiving the defendants' submissions. If the court did not receive any written submissions, the defendants would be entitled to their costs for the application.