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Legal Risk Management Canada

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Legal Risk Management Canada

Category: Case Study

Subcategory: Criminal law

Level: Masters

Pages: 4

Words: 1100

Legal Risk Management Canada
Case 1
Many organizations, both small and large, face numerous challenges in maintaining their business clients and sustaining their operations following the departure of their key officers. Because these important employees are often responsible for taking care of prime customers and essential personnel, both the companies and the leaving employees are usually concerned with delineating their pre-termination dealings. With regard to Canero’s lawsuit against Terra Surveys Limited on grounds that O’Malley and Zarzycki had breached their fiduciary duty, it is imperative to note that in the absence of fraud, limiting or restraining agreements, or the improper acquisition of confidential customer lists, former employees are free to compete with their previous employer and seek business from former customers. However, there should be no provable business activity by the said former employees prior to the termination of their employment.
The conventional fiduciary analysis is straightforward. Employees at all times contract to align personal interests with those of their employer and, therefore, gain access to the assets and information for the sole purpose of discharging their duties to the employer. Since this access is taken to be limited to its application insofar as work performance is concerned, employees attract concurrent status fiduciary accountability. Their engagement with the employer must not be compromi…

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