Great North Equipment Inc v Penney
Great North Equipment Inc.
1185641 BC Ltd.
Bradley Penney
Law Firm / Organization
Not Specified
Neil MacDonald
Law Firm / Organization
McLennan Ross LLP
Dustin Monilaws
Law Firm / Organization
McLennan Ross LLP
Paloma Pressure Control LLC
Law Firm / Organization
Bennett Jones LLP
Paloma PC Holdings LLC
Law Firm / Organization
Bennett Jones LLP
Paloma Pressure Control Canada Ltd.
Law Firm / Organization
Bennett Jones LLP
Indeed Oil Field Supply LLC
Law Firm / Organization
Not Specified
Indeed Alberta Corp.
Law Firm / Organization
Not Specified
  • Background:

    • In June 2023, three employees of Great North Equipment Inc. (the applicants) resigned and were alleged to have breached fiduciary and contractual duties. They reportedly used confidential information to form a competing business with Paloma Pressure Control entities.
    • A consent injunction issued on August 1, 2023, imposed obligations on the departed employees, including non-solicitation of employees/customers, prohibiting the use of confidential information, and surrendering electronic devices for inspection.
    • Great North sought to extend these obligations to the Paloma entities, but Justice Lema dismissed this application on September 6, 2024, allowing the injunction’s non-solicitation clause to expire.
    • The applicant appealed Justice Lema’s decision and sought a stay of his order pending the appeal, set for January 13, 2025.
  • Legal Issue: Whether the Alberta Court of Appeal should grant a stay of Justice Lema’s order pending appeal.

  • Decision:

    • Justice Joshua Hawkes dismissed the application for a stay. He determined:
      • The stay would effectively grant the remedy sought in the appeal prematurely, which is impermissible.
      • A stay cannot be issued on an order lacking affirmative or executory provisions.
    • No judgment was made regarding the appeal's merits or harm balance.
  • Key Authorities Cited:

    • Noscenco v Bagayeva (2015 ABCA 266)
    • Denis v Sauvageau (2022 ABCA 166)
    • Dr Vu v College of Physicians & Surgeons of Alberta (2023 ABCA 377)
  • Outcome: Application for a stay denied; appeal remains scheduled. 

    • The document does not specify any monetary awards, damages, or costs granted in this ruling.

Court of Appeal of Alberta
2401-0238AC
Employment law
Respondent