Employee took over 1,000 confidential documents when he leaves to start competing business
An Ontario employer proved its former vice president wrongfully took over 1,000 confidential documents when he left to start a competing business — but the company was awarded zero damages and ordered to pay $181,264 in legal costs.
The Court of Appeal for Ontario dismissed the appeal in a decision dated October 9, 2025, upholding the judgment of Justice Eugenia Papageorgiou of the Superior Court of Justice from June 25, 2024. The three-judge appeal panel found the employer, Titus Steel Company, failed to prove it suffered actual losses from Wayne Robert Hack's misconduct.
Titus Steel, a family-run business selling ballistic steel products, hired Hack as director of sales in 2001. He was promoted to vice president in the Dynamic Steel Division in 2004. By late 2015, Hack had grown increasingly dissatisfied with his job and his relationship with company director Mike Usatis deteriorated.
During this period, his wife incorporated a numbered company, registered the domain name “Progressive Armor,” and retained legal counsel.
Hack resigned in March 2016 and subsequently began operating Progressive Armor, which also sold ballistic steel. Shortly after his departure, Titus discovered Hack had copied and downloaded confidential information before leaving. He returned the backup USB drives containing the company’s documents but continued operating his...
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