Girouard v. The Queen, 80 DTC 6205, [1980] CTC 284 (FCA) -- summary under Paragraph 6(3)(e)

After dismissing its financial director but before the effective date of the dismissal, a private hospital, by its board, resolved to pay him $30,000 as liquidated damages as it was obligated to do pursuant to his employment contract and on the following day executed with him a second contract confirming the payment to him of $30,000 as liquidated damages and containing his covenant not to work for another private hospital in Quebec for two years, and not to criticize the hospital. It was held that s. 6(3)(e) did not apply because at the time of entering into the second contract the hospital already owed him (and admitted owing him) $30,000, and the $30,000 accordingly should not be regarded as consideration for his covenant.