Asked by razan osman on Apr 24, 2024
In RBC Dominion Securities Inc. v. Merrill Lynch, virtually all of the investment advisors at the RBC branch left without notice and went to work for a competitor, Merrill Lynch. What did the Court determine?
A) Merrill Lynch and its manager were found jointly and severally liable, as the manager had induced the breach of the duty not to compete unfairly.
B) RBC was found liable for inducement of breach of contract.
C) Merrill Lynch and its manager were not liable, since no notice of termination was required.
D) RBC investment advisors were not in violation of their fiduciary duty to RBC, and were not required to provide notice of termination.
E) Fiduciary duties cannot arise in the context of a mere employment relationship.
Fiduciary Duty
An obligation to act in the best interest of another party, typically in financial matters.
Inducement
An offer or incentive designed to persuade or influence someone to act in a certain way.
Duty Not to Compete
A legal agreement where one party agrees not to enter into or start a similar profession or trade in competition against another party.
- Comprehend the role and enforcement of restrictive covenants in employment contracts.
- Understand the concept of fiduciary duty and its application within the employer-employee relationship.
Learning Objectives
- Comprehend the role and enforcement of restrictive covenants in employment contracts.
- Understand the concept of fiduciary duty and its application within the employer-employee relationship.
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