News & Analysis as of

Breach of Contract Preliminary Injunctions Non-Compete Agreements

Lewitt Hackman

Franchisee 101: Braking The Competing Business

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A Massachusetts federal district court enforced a non-compete provision in a franchise agreement to enjoin former franchisees from operating a different branded automotive business at the same location as the former...more

Fox Rothschild LLP

Georgia Court Finds Hooter’s Franchise Non-Compete Unreasonable in Geographic Scope

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A district court in Georgia recently granted a Motion for Preliminary Injunction filed by HOA Franchising, LLC’s, the franchisor of the Hooters restaurant chain (“Hooters”), against one of its former restaurant franchisees,...more

Seward & Kissel LLP

Employment Litigation Roundup: November 2023

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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

Parker Poe Adams & Bernstein LLP

North Carolina Court of Appeals Limits Grounds for Review of Noncompete Injunction Denial

When litigating employment non-competition covenants, issuance by the court of a preliminary injunction may be more important than the ultimate outcome of the litigation. Depending on the circumstances, the injunction can...more

Lewitt Hackman

Franchisee 101: An UnBakeable Non-Compete

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A Minnesota federal court denied cookie dough franchisor Cookie Dough Bliss Franchising’s motion for a temporary restraining order and preliminary injunction against a former Minnesota franchisee and its owners....more

Lewitt Hackman

Franchisee 101: Blown Dry by the Competition

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A Minnesota bankruptcy court granted Fantastic Sams a preliminary injunction against a former Fantastic Sams franchisee, finding the operation of four new hair salons by the former franchisee was prohibited by enforceable...more

Bradley Arant Boult Cummings LLP

LADR Case Notes (August 2022-October 2022) and FLJ Currents (Winter 2023)

A gym franchisor recently secured a preliminary injunction against its former franchisee prohibiting the franchisee from operating an independent gym on the same location and using the franchisor’s trade secrets. Chris...more

McDermott Will & Emery

Preliminary Injunction, Meet Irreparable Harm

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The US Court of Appeals for the Fifth Circuit, in a case where an ex-employer sought preliminary injunctive relief based on an alleged breach of non-disclosure and non-compete agreements and alleged misappropriation of...more

McDermott Will & Emery

Stryking Noncompete Preliminary Injunction

McDermott Will & Emery on

The US Court of Appeals for the Sixth Circuit upheld a district court’s grant of a preliminary injunction restricting a former employee from working for conflicting organizations or communicating with a competitor’s counsel....more

Lewitt Hackman

Franchisor 101: No Repairing Delayed Filing

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A New Jersey federal court denied a franchisor’s motion for preliminary injunction against a franchisee due to franchisor’s 11 month delay in bringing the motion. Franchisee entered into two franchise agreements with H-1 Auto...more

Jackson Lewis P.C.

Second Circuit Revives ‘Uniqueness’ as Basis for Enforcing Non-Compete

Jackson Lewis P.C. on

Breathing new life into “uniqueness” (of an employee’s services) as a legitimate business interest supporting enforcement of non-competition covenants under New York law, the U.S. Court of Appeals for the Second Circuit...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

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

Lewitt Hackman

Franchisee 101: Fitness Franchisee Exercises Poor Judgment

Lewitt Hackman on

A federal court in Denver granted Fitness Together Franchise, LLC a preliminary injunction against the owner of three former franchisees, three former franchisee entities and three additional entities formed to operate a...more

Lewitt Hackman

Franchisee 101: Successor Slips Out of Non-Compete

Lewitt Hackman on

A Florida federal court granted a preliminary injunction against a terminated franchisee. The court enjoined the ex-franchisee from using the franchisor’s trademarks and trade dress. The court enforced the franchisor’s...more

Lewitt Hackman

FRANCHISOR 101: Not at Liberty to Compete

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A federal district court in Michigan granted a preliminary injunction in favor of tax preparation franchisor, Liberty Tax Service (JTH Tax, Inc. v. Magnotte, E.D. Mich., ¶16,575), finding it was likely to succeed on its...more

Bass, Berry & Sims PLC

Chris Lazarini Outlines Court Decision to Uphold Permanent Injunction Against Broker

Bass, Berry & Sims PLC on

Bass, Berry & Sims attorney Chris Lazarini outlined a court’s decision to uphold a permanent injunction against a broker finding the appellate rules do not allow for an appeal as a matter of right. In this case, a bank sought...more

Orrick - Trade Secrets Group

Intent To Use Is Sticking “Pointe” In Denial Of Preliminary Injunction

On October 25, the U.S. District Court for the District of Massachusetts denied motions for injunctive relief in a case involving trade secrets allegedly stolen by a departing consultant using his personal computer to sync...more

Zuckerman Spaeder LLP

Swimming Pool Company’s Non-Compete Claim Takes a Dive

Zuckerman Spaeder LLP on

When a company believes that an employee has breached a non-compete agreement by going to work for a competitor, one remedy it can seek is a preliminary injunction. A preliminary injunction is meant to preserve the status quo...more

Orrick - Trade Secrets Group

Don’t Friend My Friends: Nonsolicitation Agreements Should Account for Social Media Strategies

As social media becomes an important part of many companies’ sales and branding strategies, issues relating to companies’ ability to protect their investments in such strategies are emerging. Indeed, this blog has previously...more

Seyfarth Shaw LLP

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

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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

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