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Are Ex Employees Allowed To Set Up A Competing Business?

In my last column we canvassed a fictional scenario of Izzie v. Selila. Izzie hired Selila Ness to work for his travel agency located in Israel and the United States called “Izzie Travels”. Soon, Izzie recognized her talent and took complete control of the business. Izzie trusted her with his client lists, introduced her to his contacts and Selila managed the business Izzie built. After ten years Selila quit. She moved to Ontario and created her own Travel Agency. Selila used all of Izzie’s contacts, made use of his client lists and was a complete success. That success came at Izzie’s expense. Selila’s contract with Izzie provided that she would not compete with Izzie Travels in any similar activity for a period of three years. Since Selila was in Ontario he sued her in that jurisdiction.
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