Does severance apply to cure a defective covenant in s. 7.2 of the Shareholders' Agreement?
British Columbia, Canada
The following excerpt is from JTT Electronics Ltd. v. Farmer, 2014 BCSC 2413 (CanLII):
In addition, the courts will not apply severance to cure defective covenants. To do so would encourage employers to draft overly broad covenants in the hope that courts would read them down; Shafron v. KRG Insurance Brokers (Western) Inc., 2009 SCC 6 at para. 33. The difficulties with the restrictive covenant contained in s. 7.2 of the Shareholders’ Agreement are many and varied.
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