News & Analysis as of

Restrictive Covenants Breach of Contract

Kohrman Jackson & Krantz LLP

Court Ruling in Ohio Highlights Evolving Non-Compete and Non-Solicit Landscape

As the Federal Trade Commission’s Non-Compete Rule is appealed through the federal courts, a ruling from a court in Cleveland, Ohio, exemplifies how certain courts have recently approached non-compete and non-solicitation...more

WilmerHale

Beating the Odds: First Circuit Doubles Down on Massachusetts Decision Enforcing Noncompete Against Sports Betting Executive Newly...

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Against a growing trend of legislation and broader efforts seeking to limit or eliminate post-employment noncompetition restrictions, recent Massachusetts and First Circuit decisions in a dispute between DraftKings and one of...more

Quarles & Brady LLP

Supply Chain Survival Series: Remedies for Breach of Contract (Article #14)

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We have previously discussed the obligations a non-breaching party has to mitigate its own damages in the event of a contract breach. Assuming a party has mitigated its damages, this article discusses the potential remedies...more

Farrell Fritz, P.C.

Unpacking the (Un)Reasonableness of Non-Compete Provisions

Farrell Fritz, P.C. on

New York law generally does not favor non-compete agreements, viewing them as unreasonable restraint of trade. As a result, New York courts apply a rigorous standard when deciding whether to enforce these restrictive...more

Winstead PC

Key Considerations in Review of NDAs as a Buyer

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When a company is in the process of pursuing a transaction involving the acquisition or merger of another company, one of the first negotiable documents encountered will likely be a non-disclosure or confidentiality agreement...more

Levenfeld Pearlstein, LLC

Is a Taco a Sandwich? An Indiana Court Weighs In: How to Approach Real Estate Restrictive Covenants

For generations, people have long debated: Is a taco a sandwich? In a recent decision, a judge in Fort Wayne, Indiana weighed in and ruled that a taco is, in fact, a sandwich. While this particular case attracted attention...more

Foley & Lardner LLP

LeTip World Franchise LLC v. Long Island Social Media Group LLC

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In LeTip World Franchise LLC v. Long Island Social Media Group LLC, the U.S. District of Court for the District of Arizona granted a temporary restraining order in favor of a franchisor, LeTip World Franchise LLC (“LeTip”)...more

McDermott Will & Emery

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

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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

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

Lewitt Hackman

Franchisor 101: Getting Away With Tax (Franchisor) Evasion

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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

Jackson Lewis P.C.

Delaware Supreme Court Upholds Forfeiture-for-Competition Provision in Limited Partnership Agreement

Jackson Lewis P.C. on

Stemming a tide of Delaware decisions closely scrutinizing and refusing to enforce non-compete agreements, Delaware’s Supreme Court held that forfeiture-for-competition provisions arising out of a Delaware limited partnership...more

Morris James LLP

Chancery Finds Non-Compete Unenforceable by Subsidiaries Unless Identified in Agreement

Morris James LLP on

Frontline Techs. Parent, LLC v. Murphy, C.A. No. 2023-0546-LWW (Del. Ch. Aug. 23, 2023) - This non-compete decision reminds drafters to pay careful attention to scope and definitions, in particular language covering the...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

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

Epstein Becker & Green

Preemption Questions Continue as FTC and NLRB Fight Restrictive Covenants

Epstein Becker & Green on

As federal administrative agencies wade further into rulemaking and adjudicative efforts to outlaw noncompetes and restrictive covenants, defendants are beginning to raise preemption arguments in response to state court...more

Seward & Kissel LLP

Employment Litigation Roundup: September 2023

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September 2023: Enjoining competitive employment, advisor mobility, reverse discrimination, the low bar for retaliation, and litigating “Cause” Connecticut Court Issues Temporary Restraining Order Enforcing Noncompete...more

Fisher Phillips

Former Employees Who Couldn’t Wait to Leave Their Florida Employer Before Illegally Competing Ordered to Pay Heavy Price

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A Florida Circuit Court judge sternly rebuked two former employees of a private South Florida provider of Autism treatment services who began competing illegally with a new employer – while still employed with their old...more

AEON Law

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

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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

WilmerHale

When Is a Bait-and-Switch Not a Bait-and-Switch? When Key Personnel Ignore Their Non-Compete Agreements

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Can a disappointed offeror successfully challenge an award by demonstrating that it had signed non-compete agreements with the awardee’s proposed key personnel? Not necessarily. ...more

Morris James LLP

Supreme Court Affirms Chancery’s Interpretation of Word “And” in Option Agreements

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Weinberg v. Waystar, Inc., No. 274, 2022 (Del. March 16, 2023) - The appellant was a former chief marketing officer of the appellee, a Delaware corporation. Soon after her termination, the appellant timely exercised her...more

Cozen O'Connor

A Third Party in New Jersey May be Unable to Avoid Fee Awards Under an Exception to the American Rule

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As a cautionary tale, in Accounteks.Net, Inc. v. CKR Law, LLP, and Christian Montes, the New Jersey Appellate Court ruled on May 9, 2023, that, under an exception to the American Rule, a third party can be liable for...more

Lewitt Hackman

Franchisor 101: Court Hits Brakes on Former Franchisees

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An Ohio appellate court upheld the state trial court’s decision to grant a permanent injunction against two former franchisees of an auto body shop franchise working for a competitor in violation of the franchise agreement’s...more

Foley & Lardner LLP

Protecting Trade Secrets In States That Disfavor Noncompetes

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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

Seyfarth Shaw LLP

Lessons from a Staffing Misappropriation and Non-Compete Trial

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Cases don’t try very often. Doubly so in trade secret/non-compete litigation. So many of these disputes get resolved at the injunctive relief phase of the proceeding that, when one goes the distance, it is almost always worth...more

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