No Limits Sportswear Inc. is suing a raft of defendants for allegedly using information contained in a business plan and a confidential information memorandum (CIM) to establish a competing men's underwear business.
No Limits alleges that former employee Desmond Price breached a non-competition agreement and non-disclosure agreement by working with several others to launch a venture known as Pakage and Keyhole, which sold substantially similar men's underwear to the kind that No Limits was selling.
No Limits claims that it had been marketing underwear branded Saxx Apparel, which was characterized by an inner pouch that cups the scrotum and insulates it from contact with the thighs. No Limits then sought investors in the lead-up to buying Saxx Apparel in January 2010, according to its notice of civil claim, which was filed June 8.
Defendant Dustin Bigney, who owned a Kelowna store, which sold the underwear, expressed an interest in being an investor. No Limits executives told him of the confidential nature of the discussions and that if Bigney were to share information with others, that they would have to sign confidentiality agreements, according to the notice of civil claim.
Bigney then showed showed the business plan and CIM to some other defendants: KE Imports Ltd., Shawn Ellis, Glen Kirk and Scott Hannan, No Limits alleges.
That group teamed up to create Pakage and Keyhole and snag both market share and market positioning, according to the statement of claim.
No Limits seeks damages for loss of business opportunity, loss of market share and loss of market position. It also wants the defendants' profits from the Pakage and Keyhole business.
No statement of defence had been filed by press time. None of these allegations has been proven in court.
