Copyfax Inc. v. Lambert Flashcards
What was the main reason Copyfax fired Lambert?
He breached his fiduciary duty (CCQ 2088) by operating a competing business while still employed.
Under what provision did Copyfax claim serious cause for dismissal?
CCQ 2094 – dismissal for serious reason without notice or severance.
What did the first injunction sought by Copyfax involve?
Preventing Lambert from using confidential information under the confidentiality clause in his employment contract.
Did Lambert contest the first injunction?
No, he agreed to it, and the court granted the injunction despite no evidence he used the information.
What three conditions must a non-competition clause meet under CCQ 2089?
The clause must have:
A reasonable time limit
A reasonable geographic scope
A reasonable restriction on type of work
Who has the burden of proof in enforcing a non-competition clause?
The employer must prove all three conditions are reasonable.
What happens if even one condition is unreasonable?
The entire clause is void — the court will not rewrite or reduce the terms.
What did the court find unreasonable in Copyfax’s non-competition clause?
14-month duration
Large geographic area (5000 km² around Montreal and Laval)
The type of business (photocopier servicing) was not unique to Copyfax
Did the court grant the second injunction (non-competition)?
No, the clause was deemed unreasonable and unenforceable.
What is a contract of adhesion?
A contract with unequal bargaining power, typically imposed by the employer without negotiation.
Why is contract of adhesion relevant in this case?
The court was less sympathetic to Copyfax because the contract was non-negotiable and Lambert signed it to get the job.
Why is this case important for employment law?
It shows that non-competition clauses will only be enforced if strictly reasonable, and that adhesion contracts are interpreted against the employer.
