News & Analysis as of

Appeals Contract Terms Unenforceable Contract Terms

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

California Appellate Decision Raises New Considerations for Arbitration Agreements

A California appellate court recently denied a motion to compel arbitration, finding the agreement unconscionable in part because it (1) applied to all claims rather than just those arising from employment, (2) was unlimited...more

Latham & Watkins LLP

Court of Appeal Rules on Enforceability of Mandatory ADR Clauses

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A recent decision reminds parties about the need to draft dispute resolution clauses that are tailored to the parties’ agreement. The Court of Appeal recently ruled that an alternative dispute resolution (ADR) clause in...more

FordHarrison

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

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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

Lathrop GPM

The Franchise Memorandum - Issue #271

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Ninth Circuit Reverses Class Action Settlement Approval and Fee Award - The Ninth Circuit Court of Appeals has reversed the approval of a $10 million voucher settlement and a $2.6 million attorneys’ fee award in a class...more

Holland & Knight LLP

Courts Split on Class Action Waivers, Arbitration Provisions in ERISA Litigation

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Courts have struggled through the years when considering the enforceability of mandatory class action waivers and arbitration provisions contained within Employee Retirement Income Security Act of 1974 (ERISA) plans and other...more

White & Case LLP

Liquidated damages and penalties in Singapore

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Liquidated damages provisions in contracts are unenforceable if they constitute a "penalty". The past few years have seen subtle but important shifts in how the concept of a penalty is defined. A recent decision from the...more

Lewitt Hackman

Franchisor 101: Forum Selection Clause Gone Wrong

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A California Court of Appeal held that courts should not enforce forum selection clauses in contracts that also contain a jury waiver. For franchisors that have California franchisees, this ruling could complicate the ability...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

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

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

Patton Sullivan Brodehl LLP

Can a Holdover Commercial Tenant Hold On to a Right of First Refusal?

In California, a holdover tenant (a tenant who remains in possession after the expiration of the written lease) has fewer rights than a tenant operating under a lease....more

Dechert LLP

Not Caring about (Profit) Sharing: Third Circuit Invalidates Profit-Sharing Clause on Anti-Assignment Grounds

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Can a profit-sharing provision in a commercial lease survive assumption and assignment by a debtor? Analyzing such a provision, the Third Circuit answered “no,” finding the provision to constitute an unenforceable...more

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

California Court Invalidates Arbitration Agreement With PAGA Waiver

In an unpublished decision, the California Court of Appeal, Third Appellate District denied an employer’s motion to compel arbitration of a former employee’s Private Attorneys General Act (PAGA) claims. Instead, the court...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

Lowndes

Your Lease Renewal Option May be Ineffective

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In its recent decision in Jahangiri, et al. v. 1830 North Bayshore, LLC, the Third District Court of Appeal asserted that a lease extension option based on “market rate” is insufficient to create a binding and effective...more

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