News & Analysis as of

Breach of Contract Non-Solicitation Agreements Restrictive Covenants

McDermott Will & Emery

Fifth Circuit Rejects Recruiter’s Trade Secret Misappropriation and Contract Defenses

McDermott Will & Emery on

The US Court of Appeals for the Fifth Circuit affirmed a district court’s decision finding trade secret misappropriation and breach of contract based on a recruiter’s improper use of confidential client information. Counsel...more

Lewitt Hackman

Franchisor 101: Getting Away With Tax (Franchisor) Evasion

Lewitt Hackman on

A Pennsylvania federal court refused to enforce non-competition and non-solicitation covenants in a franchise agreement of a nationwide tax preparation service franchisor. The court dismissed the franchisor’s request for...more

Seward & Kissel LLP

Employment Litigation Roundup: November 2023

Seward & Kissel LLP on

Ex-employee’s golf outing with customer does not violate non-solicit - An auto parts manufacturer in Michigan sought a preliminary injunction against a former sales employee for violating his restrictive covenants,...more

Holland & Knight LLP

A Cautionary Tale from arrivia Inc. v. Rowley

Holland & Knight LLP on

Enforceability of releases for unknown claims at the time of settlement is a well-established legal principle, as highlighted in the recent case, arrivia Inc. v. Rowley, No. CV-23-01039-PHX-DLR, 2023 WL 7386384 (D. Ariz. Nov....more

AEON Law

Patent Poetry: Employee Confidentiality Agreements Can Be Enforced without New Consideration

AEON Law on

A federal court in Pennsylvania has held that a confidentiality agreement signed five months after an employee was hired can be enforced after the employee leaves even if the employee received no consideration other than...more

Foley & Lardner LLP

Protecting Trade Secrets In States That Disfavor Noncompetes

Foley & Lardner LLP on

Federal and state laws are becoming increasingly unfriendly to employers' efforts to impose post-employment restrictions on workers via nonsolicit and noncompete agreements. However, even in states that have historically...more

Proskauer - California Employment Law

California Court of Appeal Publishes Opinion Upholding Customer Non-Solicitation Covenant

Despite California’s general hostility towards post-termination restrictive covenants, the California Court of Appeal, in a recently published opinion, Blue Mountain Enters., LLC v. Owen, 74 Cal.App.5th 537 (1st Dist. Jan....more

Morris James LLP

Chancery Rules That The Standard Of Proof For Contempt Motions Is The Preponderance Of The Evidence, Not Clear And Convincing...

Morris James LLP on

inTEAM Associates, LLC v. Heartland Payment Systems, LLC, C.A. No. 11523-VCF (Del. Ch. Oct. 29, 2021) - Court of Chancery Rule 70(b) empowers the Court to hold a party in contempt for, among other things, failing to obey...more

Lewitt Hackman

Franchisor 101: Competing With a Non-Compete Covenant?

Lewitt Hackman on

A federal court in Louisiana granted a preliminary injunction against a former franchisee of Liberty Tax Service for breaching post-termination covenants under a franchise agreement. Liberty Tax entered into franchise...more

Farrell Fritz, P.C.

Restrictive Covenants: The Importance of Understanding Their Contractual Limits

Farrell Fritz, P.C. on

If supermodel Tyra Banks has taught us anything about the modeling industry, it’s that the competition is fierce. Unfortunately, one Manhattan-based modeling agency and former agent aren’t learning this lesson on the...more

Ward and Smith, P.A.

Reminder to North Carolina Employers: Take Time to Thoughtfully Craft Your Restrictive Covenants!

Ward and Smith, P.A. on

A recent decision of the North Carolina Court of Appeals serves as an important reminder to avoid the temptation to overreach when seeking to protect your customer relationships. Restrictive covenants prohibiting...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

Fisher Phillips

Contractual Employee Non-solicitation Provisions Under Attack: Employer Loses Battle in Case Involving Unique Facts

Fisher Phillips on

California’s prohibition against contracts that restrain a person’s ability to engage in a lawful business, profession, or trade is well-established and well-known. Ten years ago, in Edwards v. Arthur Andersen LLP (2008) 44...more

Morris James LLP

Court Of Chancery Provides Guidance On Reconciling Public Policy Exception To Noncompete Agreements

Morris James LLP on

Cabela’s LLC v. Wellman, C.A. 2018-0607-TMR (October 26, 2018) - Delaware law broadly enforces noncompete agreements. However, it will not do so when the public policy of a state with greater contacts to the parties...more

Payne & Fears

Arizona Employers, What Exactly Does Your Non-Solicitation Agreement Prevent?

Payne & Fears on

Non-solicitation agreements are commonly used by employers to restrict former employees from soliciting clients following termination of the employment relationship. Courts throughout the country have different takes on the...more

Jaburg Wilk

An Easy and Effective Way for Employers to Protect Themselves

Jaburg Wilk on

Imagine this scenario: Your company is in Arizona and one of your sales representatives goes to work for a competitor. He knows all about your pricing and bidding practices, so he helps your competitor undercut your prices....more

Ballard Spahr LLP

Conversion to At-Will Status Does Not Void Restrictive Covenant, PA Court Holds

Ballard Spahr LLP on

Non-solicitation covenants contained in two expired employment agreements were still in effect even after the employees in question were converted to "at-will" status and later terminated, the Pennsylvania Superior Court has...more

Seyfarth Shaw LLP

Texas Court of Appeals Finds Noncompete Agreement Inapplicable to Former President’s Post-Termination Activities Due to the...

Seyfarth Shaw LLP on

On October 27, 2016, the Fort Worth Court of Appeals affirmed a lower court’s order denying an application for temporary injunction seeking to enjoin Thomas Musgrave, the former president of Henry F. Coffeen III Management,...more

Fisher Phillips

Establishing Personal Jurisdiction Over Remote Employees

Fisher Phillips on

According to a recent Gallup poll, thirty-seven percent (37%) of U.S. workers report that they telecommute or otherwise work remotely. Indeed, due to advances in technology, many employees never report to an office of their...more

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

First Circuit Holds Massachusetts Salesman Violated Nonsolicitation Covenant, Even Though Customer Made “Initial Contact”

On September 23, 2013, the First Circuit Court of Appeals, applying Massachusetts law, upheld a preliminary injunction in a nonsolicitation covenant case, and discussed the often-murky line between “soliciting” and “accepting...more

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