Anderson v. Berry-Heldt et al., 2007 BCCA 100

JudgeDonald, Hall and Lowry, JJ.A.
CourtCourt of Appeal (British Columbia)
Case DateFebruary 09, 2007
JurisdictionBritish Columbia
Citations2007 BCCA 100;(2007), 238 B.C.A.C. 39 (CA)

Anderson v. Berry-Heldt (2007), 238 B.C.A.C. 39 (CA);

    393 W.A.C. 39

MLB headnote and full text

Temp. Cite: [2007] B.C.A.C. TBEd. MR.014

Kristen Anderson (appellant/petitioner) v. Trilink Travel Inc., Lynn Berry-Heldt, 0706787 B.C. Ltd. and Melody McLennan (respondents/respondents)

(CA033693; 2007 BCCA 100)

Indexed As: Anderson v. Berry-Heldt et al.

British Columbia Court of Appeal

Donald, Hall and Lowry, JJ.A.

February 9, 2007.

Summary:

Anderson was a travel agent and a one-third shareholder in Trilink Travel Inc. She misappropriated monies from Trilink. Trilink's two other shareholders bought out Anderson's interest under a shot-gun provision in their shareholders agreement. Anderson petitioned for a declaration that a non-competition clause in the shareholders agreement was unenforceable because it was void as an unlawful restraint of trade.

The British Columbia Supreme Court, in a decision reported at [2005] B.C.T.C. 1825, dismissed the petition. Anderson appealed.

The British Columbia Court of Appeal dismissed the appeal

Contracts - Topic 6732

Illegal contracts - Contrary to public policy - Restraint of trade - Agreements not to compete or solicit - Anderson was a travel agent and a one-third shareholder in Trilink Travel Inc. - She misappropriated monies from Trilink - Trilink's two other shareholders bought out Anderson's interest under a shot-gun provision in their shareholders agreement - Anderson petitioned for a declaration that a non-competition clause in the shareholders agreement was unenforceable because it was void as an unlawful restraint of trade - Under the clause Anderson was prohibited from competing with Trilink in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario in the travel business for one year following the sale of her interest in Trilink - A chambers judge dismissed the petition - The British Columbia Court of Appeal dismissed Anderson's appeal - Although the chambers judge erred in considering Anderson's fraud in dealing with the enforceability of the non-competition covenant, there was otherwise a sound basis for his conclusion that it was reasonable and that it ought to be enforced between the parties without any alteration of its scope.

Cases Noticed:

Collins (J.G.) Insurance Agencies Ltd. v. Elsley Estate, [1978] 2 S.C.R. 916; 20 N.R. 1, refd to. [para. 12].

Counsel:

N.J. Preovolos, for the appellant;

M.C. Guiton, for the respondent.

This appeal was heard in Vancouver, B.C., on February 9, 2007, by Donald, Hall and Lowry, JJ.A., of the British Columbia Court of Appeal. Hall, J.A., delivered the following oral decision for the court on February 9, 2007.

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3 practice notes
  • Senos v. Pacesetter Performance Drilling Ltd. et al., 2010 ABQB 533
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • 22 Julio 2010
    ...1; 446 W.A.C. 1; 2009 SCC 6, refd to. [para. 32]. Anderson v. Berry-Heldt et al., [2005] B.C.T.C. 1825; 2005 BCSC 1825, affd. (2007), 238 B.C.A.C. 39; 393 W.A.C. 39; 2007 BCCA 100, refd to. [para. Anderson v. Trilink Travel Inc. - see Anderson v. Berry-Heldt et al. Capital Safe & Lock S......
  • Teco Natural Resource Group Ltd. v. Bernier et al., [2010] B.C.T.C. Uned. 1140
    • Canada
    • Supreme Court of British Columbia (Canada)
    • 8 Junio 2010
    ...the purchase and sale of a business. The latter are scrutinized much less rigorously: see Anderson v. Berry-Heldt , 2005 BCSC 1825, aff'd 2007 BCCA 100. In this case, the plaintiff says since the defendants, in agreeing to be bound by the terms of the shareholders' agreement, took on for th......
  • Restrictive Covenants In The Sale Of A Business
    • Canada
    • Mondaq Canada
    • 25 Junio 2012
    ...of a business. Footnotes 2012 ONSC 1840, at para. 11. [1978] 2 S.C.R. 916, at p. 924. [1990] B.C.J. No. 181. 2005 BCSC 1825, upheld at 2007 BCCA 100. 2001 BCSC 922, decision appealed by one plaintiff and decision reversed on other grounds, 2004 BCCA 2009 SCC 6. Ibid, at paras 2, 36, 49 and ......
2 cases
  • Senos v. Pacesetter Performance Drilling Ltd. et al., 2010 ABQB 533
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • 22 Julio 2010
    ...1; 446 W.A.C. 1; 2009 SCC 6, refd to. [para. 32]. Anderson v. Berry-Heldt et al., [2005] B.C.T.C. 1825; 2005 BCSC 1825, affd. (2007), 238 B.C.A.C. 39; 393 W.A.C. 39; 2007 BCCA 100, refd to. [para. Anderson v. Trilink Travel Inc. - see Anderson v. Berry-Heldt et al. Capital Safe & Lock S......
  • Teco Natural Resource Group Ltd. v. Bernier et al., [2010] B.C.T.C. Uned. 1140
    • Canada
    • Supreme Court of British Columbia (Canada)
    • 8 Junio 2010
    ...the purchase and sale of a business. The latter are scrutinized much less rigorously: see Anderson v. Berry-Heldt , 2005 BCSC 1825, aff'd 2007 BCCA 100. In this case, the plaintiff says since the defendants, in agreeing to be bound by the terms of the shareholders' agreement, took on for th......
1 firm's commentaries
  • Restrictive Covenants In The Sale Of A Business
    • Canada
    • Mondaq Canada
    • 25 Junio 2012
    ...of a business. Footnotes 2012 ONSC 1840, at para. 11. [1978] 2 S.C.R. 916, at p. 924. [1990] B.C.J. No. 181. 2005 BCSC 1825, upheld at 2007 BCCA 100. 2001 BCSC 922, decision appealed by one plaintiff and decision reversed on other grounds, 2004 BCCA 2009 SCC 6. Ibid, at paras 2, 36, 49 and ......
2 books & journal articles
  • Table of cases
    • Canada
    • Irwin Books Archive Legal Research and Writing. Third Edition
    • 6 Septiembre 2010
    ...O.R. (3d) 375 (S.C.J.) ...... 331 Anderson v. Berry-Heldt (2005), 15 B.L.R. (4th) 35, [2005] B.C.J. No. 2934, 2005 BCSC 1825, aff’d (2007), 238 B.C.A.C. 39, 28 B.L.R. (4th) 264, 2007 BCCA 100 ........................................................................................... 385 Ara......
  • Appendix: Putting it All Together-A Sample Research Problem and Memorandum of Law
    • Canada
    • Irwin Books Archive Legal Research and Writing. Third Edition
    • 6 Septiembre 2010
    ...that the agreement was freely negotiated. 34 Ibid . at para. 81. 35 2004 NBQB 152. 36 Ibid . at paras. 26–27. 37 2005 BCSC 1825, aff’d 2007 BCCA 100. Legal Research and Writing 386 Applying the factors from the foregoing cases to our client’s situation would suggest that a covenant in the s......

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