The Court of Appeal for Ontario recently dealt with an employment dispute involving a software developer who breached his fiduciary duties and confidentiality obligations to his former employer.

The case involved allegations that the worker copied proprietary software and used confidential information to compete directly with his previous company after leaving his position.

The worker appealed the substantial damages award on two main grounds. First, he argued that the trial judge had improperly drawn an adverse inference against him without sufficient evidence.

Second, he argued that certain claims against him were brought too late and should be dismissed under limitation period legislation.

Worker’s access to employer’s confidential information

The worker had been employed as a software developer and manager before leaving his position on 30 November 2012. However, he continued working as an independent contractor because the employer could not immediately replace him.

During this extended relationship, the worker maintained access to confidential information, including software, customer details, distributors, and sales data until May 2013.

After leaving his employment, the worker established his own company. The employer's primary allegation was that the worker and his company had copied proprietary software to create competing products and used confidential information to solicit distributors and clients. The trial judge found the worker liable for breach of...

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