Berthe v. Greggor, (1982) 20 Man.R.(2d) 122 (QB)

• Judge: Hewak, J.
• Court: Court of Queen's Bench of Manitoba (Canada)
• Case Date: December 27, 1982
• Jurisdiction: Manitoba
• Citations: (1982), 20 Man.R.(2d) 122 (QB)

Berthe v. Greggor (1982), 20 Man.R.(2d) 122 (QB)

MLB headnote and full text

Berthe v. Greggor

(Suit No. 3/82 Civ. N.J.D.)

Indexed As: Berthe v. Greggor

Manitoba Court of Queen's Bench

Hewak, J.

December 27, 1982.

Summary:

The plaintiff buyer brought an action to restrain the defendant seller from breaching a restrictive covenant in a purchase and sale agreement.

The Manitoba Court of Queen's Bench allowed the action and granted the buyer an injunction.

Contracts - Topic 6723

Illegal contracts - Contrary to public policy - Restraint of trade - Interpretation - The Manitoba Court of Queen's Bench discussed the interpretation of restrictive covenants - See paragraphs 8 to 16.

Contracts - Topic 6732

Illegal contracts - Contrary to public policy - Restraint of trade - Agreements not to compete - A purchase and sale agreement for a hairdressing business contained a restrictive covenant restraining the seller from carrying on a hairdressing business or being employed as a hairdresser within the city for five years - The Manitoba Court of Queen's Bench held that the covenant was reasonable and granted the buyer an injunction to restrain the seller from breaching the covenant - See paragraphs 17 to 29.

Contracts - Topic 7401

Interpretation - General principles - Intention of parties - A purchase and sale agreement for a hairdressing business contained a restrictive covenant restraining the seller from having a proprietary interest in or becoming "interested in any way" in a competitive business - The purchase price included an amount for goodwill - The Manitoba Court of Queen's Bench held that it was the intention of the parties that the seller not only refrain from carrying on a hairdressing business but also refrain from being employed as a hairdresser - See paragraphs 7 to 30.

Contracts - Topic 7406

Interpretation - General principles - Interpretation by context - Ejusdem generis - The Manitoba Court of Queen's Bench did not apply the ejusdem generis rule to a restrictive covenant contained in a purchase and sale agreement for a hairdressing business, because application of the rule would defeat the true intention of the parties - See paragraphs 8 and 9.

Injunctions - Topic 5971

Particular matters - Restrictive covenants - Covenant not to compete - A restrictive covenant in a purchase and sale agreement for a hairdressing business stated, inter alia, that the seller would not become "interested in any way" in a competitive business in the city for five years - The seller, who became employed in a competitive business, submitted that the words "interested in any way" meant having a proprietary interest in the business - The Manitoba Court of Queen's Bench held that the covenant included being employed, so granted the buyer an injunction to restrain the seller from hairdressing - See paragraph 30.

Cases Noticed:

Nordenfelt v. The Maxim Nordenfelt Guns and Ammunition Company, Limited, [1894] A.C. 535, consd. [para. 13].

Marion White Ltd. v. Francis, [1972] 3 All E.R. 857 (C.A.), consd. [para. 19].

Cope v. Harasimo (1964), 48 D.L.R.(2d) 744, consd. [para. 25].

Trego et al. v. Hunt, [1896] A.C. 7, consd. [para. 28].

Counsel:

M.W. Howell, for the plaintiff;

R. Barton, for the defendant.

This case was heard by HEWAK, J., of the Manitoba Court of Queen's Bench, who on December 27, 1982, delivered the following decision.