Teeth bared as Canadian dental giant targets former ‘partner’ in legal battle
Canada’s largest network of dental practices has recently made headlines after obtaining a B.C. Supreme Court injunction against a former partner, Dr. Jasdip Minhas, in connection with a franchise business venture known as “Smili Dental.” Described in court documents as a concept similar to a “McDonald’s of dentistry,” the legal dispute sheds light on the competitive and potentially lucrative nature of the dental industry.
The legal battle stems from a 2017 contract between Dr. Minhas and Dentalcorp, a publicly traded company valued at $1.9 billion. The agreement, which involved the sale of Minhas’s five Prince George clinics to Dentalcorp for approximately $11 million, included provisions that prevented Minhas from engaging in any competing business within a 10-kilometre radius of the clinics. Dentalcorp acquired the “goodwill” of Minhas’s clients as part of the deal, which encompassed aspects such as existing telephone numbers, trade names, and email addresses.
However, the dispute arose when Minhas allegedly purchased a clinic within the restricted area, leading to the launch of Smili Dental in 2022. The franchise model involved Smili Dental assisting dentists in establishing and operating their practices, akin to a turnkey solution similar to a fast-food franchise. Despite Minhas’s claim that he received approval from a company official to proceed with Smili, Dentalcorp contended that the venture violated their agreement and posed a direct competition.
In response, Dentalcorp filed a civil claim against Minhas, citing breaches of their contract, including allegations of soliciting patients and employees, using confidential information, and disparaging the company in communications. The company sought an injunction to halt Minhas’s involvement with Smili Dental pending the resolution of the lawsuit, citing the potential for irreparable harm if allowed to continue.
In his defense, Minhas denied the allegations and expressed concerns about Dentalcorp’s conduct, maintaining that he had no intention of soliciting patients or using confidential information. However, the court ruled in favor of Dentalcorp, emphasizing the importance of preventing further harm and ensuring the integrity of patient care and team stability at the Prince George clinics.
Moving forward, Dentalcorp welcomed the court’s decision, emphasizing their commitment to protecting their network, patients, and teams. While the legal battle continues, it underscores the complexities of business relationships in the dental industry and the need for clear agreements to avoid conflicts. As the case unfolds, the outcome will shape the future landscape of dental practices in Canada.
