liability corporate-law non-compete
Liability from conflict of interest
<p>There are two co-owners, <em>A</em> and <em>B</em>, of a federal corporation <em>C</em> in Canada. <em>B</em> has a side job at a Canadian company <em>D</em> which has a non-compete clause in the contract. <em>C</em> and <em>D</em> do in fact compete. If a legal case is made, is it person <em>B</em> or corporation <em>C</em> that can be sued? And can <em>A</em> be held liable in any way?</p>

<h2>Only parties to the contract can sue for breach of the contract</h2>

<p>In the situation you describe, the contract is between B and D so only B can be sued for its breach.</p>

<h2>However, ...</h2>

<p>There is a tort of <a href="https://ballawyers.com.au/2018/01/08/tort-breach-contract/" rel="nofollow noreferrer">inducing breach of contract</a> which is not often litigated. Under this tort, if either A or C were aware of B's contract with D (C is almost certainly aware) and they induced B to break that contract, D can sue them for damages.</p>
