News & Analysis as of

Appeals Contract Terms Non-Compete Agreements

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Rules That Partial Sale of Business Can Bind Seller-Owner to a Noncompetition Agreement

In Samuelian v. Life Generations Healthcare, LLC, — Cal. App. 5th —, 2024 WL 3878448 (Cal. App. Aug. 20, 2024), the California Court of Appeal answered two long outstanding questions of California law concerning the...more

FordHarrison

Non-Compete News: Georgia Appeals Court Clarifies What Constitutes Appropriate Definition of Territory In Non-Compete Under RCA

FordHarrison on

Last month, in American Plumbing Professionals, Inc. v. ServeStar, LLC, Georgia’s Court of Appeals reversed a trial court’s determination that a non-compete provision was unenforceable and void because its territory was too...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Wyoming Supreme Court Eliminates the Blue Pencil Rule for Noncompete Agreements

On February 25, 2022, the Wyoming Supreme Court issued a decision prohibiting courts from revising, or “blue penciling,” noncompete agreements to be reasonable and enforceable under the law. The decision overrules the Wyoming...more

Stokes Wagner

What Are The Limits Of A Court’s Ability To Enforce A Non-Compete Agreement?

Stokes Wagner on

The parties in the case of Daneshgari v. Patriot Towing Services, LLC, No. A21A0887 (Ga.App. Oct. 21, 2021), had entered into a four-year non-compete agreement in June of 2016 that Daneshgari and his partner began to violate...more

Nutter McClennen & Fish LLP

First Circuit Enforces Delaware Choice-of-Law Provision in Massachusetts-Based Non-Competition Agreement

The Court of Appeals for the First Circuit found that a Delaware choice of law provision in a non-competition and non-solicitation agreement with a former Massachusetts employee was sufficient to invoke Delaware law. Notably,...more

FordHarrison

Fifth Circuit Provides Positive Guidance on Independent Contractor Classification

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Applying the “economic realities” test, the Fifth Circuit (with jurisdiction over federal courts in Louisiana, Mississippi, and Texas) recently held that a consultant for an oil and gas company was not subject to FLSA...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Indiana Supreme Court Reaffirms That the Blue Pencil Doctrine Is an ‘Eraser’ for Overbroad Restrictive Covenant Language

On December 3, 2019, in Heraeus Medical, LLC v. Zimmer, Inc., the Indiana Supreme Court reaffirmed the “blue pencil doctrine,” likening the doctrine to an eraser and stating that Indiana courts may only delete language from...more

Lewitt Hackman

Employers, in case you were wondering, your employees cannot compete with you

Lewitt Hackman on

Many California laws seek to restrict the terms and conditions an employer may place on an employee during employment. Tuesday, the California Court of Appeal confirmed that Business and Professions Code Section 16600 is not...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Louisiana Court Upholds Ruling Allowing for the Reformation of a Noncompetition Agreement

The Louisiana Second Circuit Court of Appeal recently held that a noncompetition provision under La. R.S 23:921 affecting a former member of an accounting limited liability company (LLC) could be reformed when the scope of...more

Parker Poe Adams & Bernstein LLP

North Carolina Courts Defeat Another ‘Overbroad' Noncompete

In recent years, North Carolina courts have become increasingly resistant to enforcing noncompetition and non-solicitation restrictions they view as insufficiently narrowed to the specific competitive threat presented by the...more

FordHarrison

Non-Compete News: – Georgia Court Interprets Non-Compete Statute's "Sale-of-a-Business" Provision

FordHarrison on

Georgia’s Restrictive Covenants Act (O.C.G.A. § 13-8-50 et seq.) (“RCA”) governs Georgia non-compete agreements entered into after May 2011. Very few courts have interpreted the RCA since its inception. In Bearoff v. Craton,...more

Parker Poe Adams & Bernstein LLP

N.C. Court of Appeals Rejects Customer Non-Solicitation Restriction

When we talk with clients about post-employment “noncompete” agreements, this term actually encompasses a number of different restrictions. In addition to provisions that restrict the employee from working for a competitor...more

Dorsey & Whitney LLP

Colorado Courts Further Restrict Use of Restrictive Covenants

Dorsey & Whitney LLP on

Refusing to enforce a non-solicitation provision that violated public policy, the Colorado Court of Appeals held that parties to a non-solicitation agreement cannot contractually obligate the court to “blue pencil” the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Separating the Good From the Bad: UK Supreme Court Clarifies “Blue Pencil” Test in Restraint of Trade Cases

On July 3, 2019, in a long-awaited judgment the Supreme Court of the United Kingdom clarified the correct approach to deciding whether words can be severed from a post-employment covenant to leave an employee bound by the...more

Seyfarth Shaw LLP

Oregon Adds Employee-Friendly Requirement to Existing Non-Compete Law… But Also Produces Company-Friendly Trade Secrets Law in...

Seyfarth Shaw LLP on

On May 14, 2019, Oregon Governor Kate Brown signed into law HB 2992, which, as of January 1, 2020, requires an employer to provide a terminated employee with a signed, written copy of his or her non-competition agreement...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Overbroad Geographic Restriction Dooms Covenant Not to Compete

Texas law allows for the enforcement of covenants not to compete that impose reasonable restrictions on competition. Texas courts frequently enforce geographic and other restrictions on a former employee’s ability to compete...more

Allen Matkins

Court Of Appeal Upholds Injunction Restraining Enforcement Of Non-Solicitation Agreement

Allen Matkins on

California Business & Professions Code Section 16600 is particularly tough on covenants not to compete declaring, with certain exceptions, "every contract by which anyone is restrained from engaging in a lawful profession...more

FordHarrison

Non-Compete News: In Georgia, Whether It Is a Non-Compete or a Non-Solicit Makes All the Difference

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Georgia’s Restrictive Covenants Act (the “RCA”) became effective in May 2011, but it took nearly six years before a court published a decision interpreting the statute in the context of a non-competition provision....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Court Provides Guidance on Choice of Law and Forum Selection Clauses in Restrictive Covenants

With Massachusetts’s comprehensive noncompete law taking effect on October 1, 2018, many employers are reviewing and likely revising their restrictive covenants to ensure that they are compliant with the new law. In...more

Parker Poe Adams & Bernstein LLP

S.C. Supreme Court Says 150-Mile Radius Reasonable for Sale of Business Noncompete

South Carolina courts evaluate the enforceability of noncompete provisions executed in the employment context and in connection with the sale of businesses under the same reasonableness test. To be enforceable in South...more

Brownstein Hyatt Farber Schreck

Colorado Court of Appeals Issues Needed Guidance on Physician Non-Compete Agreements

The inclusion of a non-compete agreement, or covenant not to compete, is frequently one of the most anxiety-producing issues in physician employment contracting on the part of both the physician and the employer. This has...more

Dorsey & Whitney LLP

Seventh Circuit Rules that Company’s Distributor Is Not its Competitor

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The sale of a business virtually always involves a promise by the seller not to engage in competition with the purchaser, within certain time and geographic parameters. Frequently, such agreements contain robust prohibitions...more

Seyfarth Shaw LLP

Texas Appellate Court Holds Condition Subsequent in Noncompete Agreement Excused Former Employee’s Competitive Activities

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A Texas Court of Appeals affirmed a summary judgment last month in favor of an ex-employee declaring that a noncompete clause in an asset purchase agreement and separate noncompete agreement did not bar him from competing...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Indiana Court of Appeals Rules on Irreparable Harm, Laches, Extension Clauses, and More in Recent Restrictive Covenant Case

The Indiana Court of Appeals recently issued a restrictive covenant ruling addressing several significant issues. On November 30, 2016, in Hannum Wagle & Cline Engineering, Inc. v. American Consulting, Inc., the Indiana Court...more

Brooks Pierce

Sometimes It Might Not Be Worth It To Appeal The Denial Of A Preliminary Injunction

Brooks Pierce on

I don't think that it was worth it for TSG to appeal Judge Murphy's Order denying its Motion for a Preliminary Injunction on a covenant not to compete. That's true even though an injunction (though not on the covenant) was...more

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