Anderson, Smyth & Kelly Customs Brokers Ltd. v. World Wide Customs Brokers Ltd. et al., (1996) 184 A.R. 81 (CA)

JudgeHarradence, Bracco and O'Leary, JJ.A.
CourtCourt of Appeal (Alberta)
Case DateMay 17, 1996
Citations(1996), 184 A.R. 81 (CA);1996 ABCA 169;13 DLR (4th) 385;[1996] 7 WWR 736;184 AR 81;39 Alta LR (3d) 411;68 CPR (3d) 45;[1996] AJ No 475 (QL);122 WAC 81;20 CCEL (2d) 1

Anderson v. World Wide Customs (1996), 184 A.R. 81 (CA);

    122 W.A.C. 81

MLB headnote and full text

Anderson, Smyth & Kelly Customs Brokers Ltd. (appellant/plaintiff) v. World Wide Customs Brokers Ltd. and Peter Kelly (respondents/defendants)

(Appeal No. 14687)

Indexed As: Anderson, Smyth & Kelly Customs Brokers Ltd. v. World Wide Customs Brokers Ltd. et al.

Alberta Court of Appeal

Harradence, Bracco and

O'Leary, JJ.A.

May 17, 1996.

Summary:

The plaintiff (former employer) sued the defendants (former employee and new employer) for damages for breach of fiduciary duties.

The Alberta Court of Queen's Bench, in a judgment reported 143 A.R. 215, dismissed the plaintiff's action. The plaintiff appealed.

The Alberta Court of Appeal allowed the appeal and entered judgment against the defendants jointly and severally for $25,300.

Equity - Topic 3646

Fiduciary relationships - Breach of - By director of company - Kelly was a share­holder, director and key employee of the plaintiff - Kelly sold his shares and left his job, going to work for the defendant competitor - There was no non-solicita­tion clause - Kelly immediately solicited former clients - Some clients followed him - The trial judge held that there was no breach of fiduciary duty by Kelly - Kelly made no solicitations of clients before he left the plaintiff, did not take customer lists and many clients would have followed him in any event - The Alberta Court of Appeal held that Kelly breached his fiduciary duty - Unlike a nonfiduciary employee, a fiduciary could not solicit clients of his former employer for what was a reasonable time to permit the former employer to contact clients and attempt to retain their loyalty - The length of time depended on the level of trust and confidence reposed in the employee - The greater the employer's vulnerability, the longer the period of time - Kelly should not have solicited former clients for one year - Damages equalled lost profits for that period ($25,300) - The new employer was jointly and severally liable for knowingly assisting and participating in the breach - See paragraphs 1 to 44.

Equity - Topic 3648

Fiduciary relationships - Breach of - By employee - Solicitation of business - [See Equity - Topic 3646 ].

Equity - Topic 3655

Fiduciary relationships - Breach of - Damages - [See Equity - Topic 3646 ].

Equity - Topic 3726

Fiduciary relationships - Employer-em­ployee relationship - Duty of employee after termination - [See Equity - Topic 3646 ].

Cases Noticed:

Regal Hastings Ltd. v. Gulliver, [1942] 1 All E.R. 378 (H.L.), refd to. [para. 14].

Canadian Aero Service Ltd. v. O'Malley, [1974] S.C.R. 592; 40 D.L.R.(3d) 371, refd to. [para. 14.].

Guerin v. Canada, [1984] 2 S.C.R. 335; 55 N.R. 161; 13 D.L.R.(4th) 321, refd to. [para. 17].

Frame v. Smith and Smith, [1987] 2 S.C.R. 99; 78 N.R. 40; 23 O.A.C. 84; 42 D.L.R.(4th) 81, refd to. [para. 18].

International Corona Resources Ltd. v. LAC Minerals Ltd., [1989] 2 S.C.R. 574; 101 N.R. 239; 36 O.A.C. 57; 61 D.L.R.(4th) 14; 69 O.R.(2d) 287; 35 E.T.R. 1, refd to. [para. 19].

Hodgkinson v. Simms et al., [1994] 3 S.C.R. 377; 171 N.R. 245; 49 B.C.A.C. 1; 80 W.A.C. l; 117 D.L.R.(4th) 161, refd to. [para. 19].

Christie (W.J.) & Co. v. Greer and Sussex Realty & Insurance Agency Ltd. (1981), 9 Man.R.(2d) 269; 121 D.L.R.(3d) 472 (C.A.), refd to. [para. 22].

Metropolitan Commercial Carpet Centre Ltd. v. Donovan and Donovan (B.) Interiors Ltd. (1989), 91 N.S.R.(2d) 99; 233 A.P.R. 99 (T.D.), refd to. [para. 23].

Reed Stenhouse Ltd. v. Foster et al. (1989), 98 A.R. 49 (Q.B.), refd to. [para. 28].

Faccenda Chicken Ltd. v. Fowler, [1986] 1 All E.R. 617 (C.A.), refd to. [para. 28].

Bendix Home Systems Ltd. v. Clayton, [1977] 5 W.W.R. 10 (B.C.S.C.), refd to. [para. 28].

Bonar v. Smith, [1991] B.C.J. No. 57 (S.C.), refd to. [para. 28].

AJD Input Data Services Inc. v. Uptown Data Services Inc. (1991), 35 C.P.R.(3d) 395 (Ont. Gen. Div.), refd to. [para. 28].

Mercury Marine Ltd. v. Dillon (1986), 30 D.L.R.(4th) 627 (Ont. H.C.), refd to. [para. 28].

Tree Savers International Ltd. v. Savoy (1991), 81 Alta. L.R.(2d) 325 (Q.B.), affd. (1992), 120 A.R. 368; 8 W.A.C. 368; 84 Alta. L.R.(2d) 384 (C.A.), refd to. [para. 29].

MacMillan Bloedel Ltd. v. Binstead (1983), 22 B.L.R. 255 (B.C.S.C.), refd to. [para. 38].

Statutes Noticed:

Business Corporations Act, S.A. 1981, c. B-15, sect. 117(1)(a) [para. 13].

Counsel:

D. Venturo and P. Anic, for the appellant;

S.D. Saville, for the respondents.

This appeal was heard before Harradence, Bracco and O'Leary, JJ.A., of the Alberta Court of Appeal.

On May 17, 1996, O'Leary, J.A., delivered the following judgment for the Court of Appeal.

To continue reading

Request your trial
95 practice notes
  • Globex Foreign Exchange Corp. v. Kelcher et al., 2011 ABCA 240
    • Canada
    • Court of Appeal (Alberta)
    • 7 Abril 2011
    ...107; 2008 ONCA 576, refd to. [para. 22]. Anderson, Smyth & Kelly Customs Brokers Ltd. v. World Wide Customs Brokers Ltd. et al. (1996), 184 A.R. 81; 122 W.A.C. 81; 39 Alta. L.R.(3d) 411; 1996 ABCA 169, refd to. [para. 25]. RBC Dominion Securities Inc. v. Merrill Lynch Canada Inc. et al.......
  • Table of Cases
    • Canada
    • Irwin Books Individual Employment Law. Second Edition
    • 16 Junio 2008
    ...v. World Wide Customs Brokers Ltd. (1993), 143 A.R. 215, [1993] 8 W.W.R. 354, 12 Alta. L.R. (3d) 134, 1 C.C.E.L. (2d) 57 (Q.B.), rev’d (1996), 184 A.R. 81, [1996] 7 W.W.R. 736, 39 Alta. L.R. (3d) 411, 20 C.C.E.L. (2d) 1 (C.A.) .................. 76 Andrews v. Canada (Treasury Board) (1994),......
  • Table of Cases
    • Canada
    • Irwin Books The Law of Partnerships and Corporations. Fourth Edition
    • 5 Agosto 2018
    ....................................................... 287 Anderson, Smyth & Kelly Customs Brokers Ltd v Worldwide Customs Brokers Ltd, 1996 ABCA 169 ...................................................................... 399 Animal House Investments Inc v Lisgar Development Ltd (2007), 41 BLR......
  • Table of Cases
    • Canada
    • Irwin Books Archive Special Lectures 2007. Employment Law
    • 2 Septiembre 2007
    ...328 Anderson, Smyth & Kelly Customs Brokers Ltd. v. World Wide Customs Brokers Ltd. (1996), 184 A.R. 81, 20 C.C.E.L. (2d) 1, [1996] A.J. No. 475 (C.A.) .................................................................................... 340 Andover & Perth United Farmers’ Cooperative Ltd. v......
  • Request a trial to view additional results
83 cases
  • Globex Foreign Exchange Corp. v. Kelcher et al., 2011 ABCA 240
    • Canada
    • Court of Appeal (Alberta)
    • 7 Abril 2011
    ...107; 2008 ONCA 576, refd to. [para. 22]. Anderson, Smyth & Kelly Customs Brokers Ltd. v. World Wide Customs Brokers Ltd. et al. (1996), 184 A.R. 81; 122 W.A.C. 81; 39 Alta. L.R.(3d) 411; 1996 ABCA 169, refd to. [para. 25]. RBC Dominion Securities Inc. v. Merrill Lynch Canada Inc. et al.......
  • 1400467 Alberta Ltd. et al. v. Adderley et al., 2014 ABQB 339
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • 27 Mayo 2014
    ...89; 2013 ABQB 649, refd to. [para. 12]. Anderson, Smyth & Kelly Customs Brokers Ltd. v. World Wide Customs Brokers Ltd. et al. (1996), 184 A.R. 81; 122 W.A.C. 81; 1996 CarswellAlta 395 (C.A.), refd to. [para. Expedition Helicopters Inc. v. Honeywell Inc. (2010), 262 O.A.C. 195; 2010 ONC......
  • ADM Measurements Ltd. v. Bullet Electric Ltd. et al., 2012 ABQB 150
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • 7 Marzo 2012
    ...W.A.C. 26 (S.C.C.), refd to. [para. 63]. Anderson, Smyth & Kelly Customs Brokers Ltd. v. World Wide Customs Brokers Ltd. et al. (1996), 184 A.R. 81; 122 W.A.C. 81; 39 Alta. L.R.(3d) 411; 1996 ABCA 169, refd to. [para. Imperial Sheet Metal Ltd. v. Landry; 57134 Manitoba Ltd. v. Palmer (1......
  • BrettYoung Seeds Limited Partnership v. Dyck et al., (2013) 563 A.R. 138 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • 3 Abril 2013
    ...207 (C.A.), refd to. [para. 94]. Anderson, Smyth & Kelly Customs Brokers Ltd. v. World Wide Customs Brokers Ltd. et al. (1996), 184 A.R. 81; 122 W.A.C. 81 (C.A.), refd to. [para. 97, footnote Torcana Valve Services Inc. v. Anderson et al., [2007] 10 W.W.R. 527 ; 421 A.R. 157 (Q.B.......
  • Request a trial to view additional results
6 books & journal articles
  • Table of Cases
    • Canada
    • Irwin Books The Law of Partnerships and Corporations. Fourth Edition
    • 5 Agosto 2018
    ....................................................... 287 Anderson, Smyth & Kelly Customs Brokers Ltd v Worldwide Customs Brokers Ltd, 1996 ABCA 169 ...................................................................... 399 Animal House Investments Inc v Lisgar Development Ltd (2007), 41 BLR......
  • Table of Cases
    • Canada
    • Irwin Books Individual Employment Law. Second Edition
    • 16 Junio 2008
    ...v. World Wide Customs Brokers Ltd. (1993), 143 A.R. 215, [1993] 8 W.W.R. 354, 12 Alta. L.R. (3d) 134, 1 C.C.E.L. (2d) 57 (Q.B.), rev’d (1996), 184 A.R. 81, [1996] 7 W.W.R. 736, 39 Alta. L.R. (3d) 411, 20 C.C.E.L. (2d) 1 (C.A.) .................. 76 Andrews v. Canada (Treasury Board) (1994),......
  • The Common Law Obligations of the Employee under the Contract of Employment
    • Canada
    • Irwin Books Individual Employment Law. Second Edition
    • 16 Junio 2008
    ...Smyth & Kelly Customs Brokers Ltd. v. World Wide Customs Brokers Ltd. (1993), 1 C.C.E.L. (2d) 57 at 69 (Alta. Q.B.), rev’d (1996), 20 C.C.E.L. (2d) 1 (Alta. C.A.) [ Anderson, Smyth & Kelly ]. 121 Baird , above note 112; Sure-Grip , above note 112 at 290. 122 RBC , above note 111 at paras. 1......
  • Duties and Liabilities of Directors and Officers
    • Canada
    • Irwin Books The Law of Partnerships and Corporations. Fourth Edition
    • 5 Agosto 2018
    ...obligations even if they are not a director or officer ( Anderson, Smyth & Kelly Customs Brokers Ltd v Worldwide Customs Brokers Ltd , 1996 ABCA 169). 62 Edgar T Alberts Ltd v Mountjoy (1977), 79 DLR (3d) 108 (Ont HCJ). 63 Some recent cases in which such non-competition provisions have been......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT