Introduction

• People Corporation initiated the lawsuit in April 2024, seeking an interim injunction pending trial.
• The plaintiff requested an interim interim injunction to restrain the defendants from soliciting its clients/employees, providing services to its clients, or using its confidential information until a hearing on July 22, 2024.

Background

• In 2018, People Corporation acquired Lane Quinn Benefit Consultants Ltd. (LQBC) for $20 million.
• Defendants were former LQBC employees who resigned from People Corporation and joined Quinn Advisory Group (QAG), a competing business started by Jay Quinn in January 2024.

Legal Issues and Evidence

• Primary Legal Issue: Whether an interim interim injunction should be granted.
• Evidence: The plaintiff submitted six affidavits, emphasizing the importance of retaining key employees to prevent unfair competition and protect confidential information.

Court's Analysis

• Interim Injunction Test: Applied the tripartite test from RJR-MacDonald v Canada (Attorney General):

  • Serious issue to be tried
  • Risk of irreparable harm
  • Balance of convenience

• Findings:

  • No serious issue against other individual defendants due to lack of restrictive covenants or substantial evidence.
  • The non-acceptance covenant in Quinn's agreement was unreasonably broad and unenforceable due to lack of geographical limitations.

Conclusion

• People Corporation's application for an interim interim injunction was dismissed.
• The court concluded that People Corporation did not demonstrate a substantial risk of irreparable harm, and the balance of convenience favored the defendants. The hearing on July 22, 2024, will proceed with a more comprehensive factual record.

Costs

• None specified.