Dr. C. Sims Dentistry Professional Corporation v. Cooke
Dr. C. Sims Dentistry Professional Corporation
Law Firm / Organization
Scarfone Hawkins LLP
Kevin Cooke
Law Firm / Organization
DLA Piper (Canada) LLP
6326471 Canada Inc.
Law Firm / Organization
DLA Piper (Canada) LLP
Dr. B. Zaricniak Dentistry Professional Corporation a.k.a. Stonehill Dental
Law Firm / Organization
DLA Piper (Canada) LLP
  • Background:
    • Dr. Sims bought Dr. Cooke's dentistry practice for $1.1 million in 2017.
    • Dr. Cooke agreed to work as an associate for two years and adhere to a five-year, 15 km non-competition covenant post-association.
    • Dispute arose when Dr. Cooke began working at a nearby practice, challenging the covenant's enforceability.

Legal Issues:

  • Appeal Focus: Whether the trial judge erred in ruling the non-competition covenant reasonable and enforceable.

Court's Analysis:

  • Burden of Proof:
    • Appellant's Claim: The trial judge improperly placed the burden on Cooke to prove the covenant unreasonable.
    • Court's Finding: The trial judge followed precedent correctly, evaluating the covenant's reasonableness without reversing the burden of proof.
  • Duration of Covenant:
    • Appellant's Claim: Five years was excessive based on expected retirement and patient transition periods.
    • Court's Finding: Five years was reasonable to ensure patient relationship transition and protect the practice's goodwill.
  • Geographic Scope:
    • Appellant's Claim: The 15 km radius was overly broad.
    • Court's Finding: The radius was reasonable, reflecting typical patient travel distances and protecting the practice's goodwill.

Conclusion:

  • Appeal Outcome: The appeal was dismissed, upholding the non-competition covenant.
  • Costs: $30,000 awarded to Dr. C. Sims Dentistry Professional Corporation.

 

Court of Appeal for Ontario
COA-23-CV-0520
Corporate & commercial law
$ 30,000
Plaintiff