To legally stop a former employee from stealing clients or using confidential data in New Brunswick, you must apply for an interlocutory injunction at the Court of King’s Bench. You must prove your business will suffer “irreparable harm” that cannot be fixed with money later. The court filing fee is typically $75 CAD.
Discovering that a former employee is actively poaching your clients or using your proprietary business information is a nightmare for any business owner. 💼 When a non-compete or non-solicitation agreement is violated, waiting months for a standard trial is not an option, as your business could be ruined in the meantime. In New Brunswick, the legal tool used to immediately halt this damaging behaviour is called a court injunction.
Whether your company operates in Moncton, Fredericton, or Saint John, obtaining an injunction is a highly aggressive and complex legal maneuver. 📍 Judges do not take away a person’s right to work lightly. This guide outlines the exact steps your commercial litigation lawyer will take to protect your enterprise.
Step-by-Step Process in the New Brunswick Court of King’s Bench
An injunction is a temporary court order commanding a person to stop doing something specific until a full trial can be held. To get one, you must pass a strict legal test known in Canadian law as the RJR-MacDonald test, proving the matter is serious and urgent.
Step 1: Review the Employment Contract
Before heading to court, your law firm must ensure your contract is legally enforceable. 📝 The court will scrutinize the restrictive covenants (the non-compete or non-solicitation clauses). In New Brunswick, overly broad non-competes that span the entire province or last for many years are often thrown out by judges for being unreasonable.
Step 2: Gather Evidence of the Breach
You cannot simply suspect the employee is stealing clients; you need hard proof. 🔍 This involves gathering emails, affidavits from confused clients who were approached, or digital forensics showing the ex-employee downloaded your client database before resigning. This evidence will form the foundation of your sworn Affidavit.
Step 3: File a Notice of Motion and Affidavit
Your lawyer will draft a Notice of Motion requesting the injunction, along with a detailed Affidavit containing your evidence. 🏫 These documents are filed at the local branch of the Court of King’s Bench. If the threat to your business is extremely urgent and catastrophic, your lawyer may request an ex parte hearing, meaning the judge hears your case immediately without the former employee present.
Step 4: The Injunction Hearing
During the hearing, your lawyer must convince the judge of three things. 👨⚕️ First, there is a serious issue to be tried. Second, your business will suffer “irreparable harm” (damage to reputation or permanent loss of market share that financial damages cannot cure). Third, the “balance of convenience” favours protecting your business over the employee’s immediate activities.
How Much Does it Cost in New Brunswick?
Applying for an injunction is an emergency procedure that requires massive, immediate effort from a legal team. 💰 Be prepared for significant upfront costs:
- Court Filing Fee: Filing a Notice of Motion in New Brunswick is approximately $75 CAD.
- Commercial Litigation Lawyer Fees: Emergency legal work is expensive. Expect to pay an hourly rate of $350 to $600 CAD. Preparing and arguing an injunction typically costs between $10,000 and $25,000 CAD depending on complexity.
- Process Server: Serving the legal documents to the ex-employee will cost about $100 to $200 CAD.
How Long Does the Process Take?
The defining feature of an injunction is speed. 🕑 If you file an urgent, ex parte motion, a judge can review the case and issue a temporary order within 24 to 48 hours. If standard notice is given to the former employee, the hearing is usually scheduled within 10 to 14 days.
Frequently Asked Questions (FAQ)
What happens if the employee ignores the injunction?
If a judge grants the injunction and the former employee continues to poach clients, they can be held in contempt of court. This is a severe offence that can result in massive fines or even jail time.
Can I stop them from working in the same industry?
It is very difficult. Canadian courts heavily favour a person’s right to earn a living. Unless you have a perfectly drafted, highly specific non-compete clause, courts usually prefer non-solicitation orders (they can work in the industry, but cannot talk to your specific clients).
What is an Anton Piller order?
An Anton Piller order is an extreme form of an injunction that acts like a civil search warrant. It allows your legal team to enter the former employee’s premises without warning to search for and seize stolen digital files or documents before they can be destroyed.
Do I have to pay if I lose the injunction hearing?
Yes, usually. In Canadian commercial litigation, the “loser pays” rule generally applies. If your injunction is denied, the judge will likely order you to pay a portion of the former employee’s legal fees for having to defend themselves.
Leave a Reply