Morley Shafron worked through his incorporated company Morley Shafron Agencies Ltd. and then sold his shares in

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Morley Shafron worked through his incorporated company Morley Shafron Agencies Ltd. and then sold his shares in that company to KRG Insurance Brokers (Western) Inc. He continued to work for them and as a term of his employment contract agreed, upon leaving, not to work in the same industry for a period of three years “within the metropolitan City of Vancouver.” In 2000, Mr. Shafron left KRG and went to work for an insurance company in Richmond, British Columbia, a city immediately to the south and adjacent to the City of Vancouver. KRG sued claiming a breach of the restrictive covenant. Explain what arguments are available to Mr. Shafron to escape this restrictive covenant. Explain the likely outcome. In your answer consider whether this was an employment or a business relationship, and what difference that would make to the decision.

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