A U.S. District Judge in the Eastern District of Pennsylvania has allowed several claims to proceed to trial following a motion for summary judgment by defendants in Ozburn-Hessey Logistics, LLC v. 721 Logistics, LLC, et al, No. 12-0864 (April 4, 2014). The allegations in the case go beyond the typical defection of an employee or two to … Continue Reading
A recent Illinois federal court decision has called into question the much begrudged holding from the Illinois Appellate Court for the First District, First Division, in Eric Fifield and Enterprise Financial Group, Inc. v. Premier Dealer Services, Inc., 373 Ill. Dec. 379, 993 N.E. 2d 938 (Ill. App. Ct. June 24, 2013). The Fifield Decision … Continue Reading
The variation among states when it comes to non-compete law is a source of frustration for many employers. And sometimes, similar facts can lead to opposite results depending on the jurisdiction. A recent decision from the Southern District of Alabama, holding that a non-compete can only be signed after employment begins, shows how Alabama law … Continue Reading
The use of forum-selection clauses in non-compete agreements received a possible boost from a recent U.S. Supreme Court ruling in the case of Atlantic Marine Constr. Co. v. U.S. District Court for the Western District of Texas, 187 L. Ed. 2d 487 (2013). Cliff Atlas and Ravindra Shaw have writtten an article on the Jackson Lewis website explaining … Continue Reading
In a recent Tennessee case, Fidelity Brokerage Services LLC v. Melissa Clemens, No. 2:13-CV-239 (E.D. Tenn., Nov. 4, 2013), the Court entered a preliminary injunction prohibiting a former employee from soliciting customers or prospective customers she served while working for Fidelity, from soliciting Fidelity’s employees, and from using Fidelity’s confidential information. As we previously stated regarding the Dill v. Continental decision, the Fidelity case … Continue Reading
An Ohio appeals court recently held that an employee did not breach his non-competition agreement by creating his own business in the same industry as his former employer, despite the fact that the former employee contacted clients of his former employer and began compiling an inventory during his restricted period. Berk Enterprises, Inc. v. Polivka, 11th Dist. … Continue Reading
Shawn Kee has written on the Jackson Lewis website about a recent decision from the Court of Appeals of Tennessee, James F. Dill Jr. et al v. Continental Car Club, Inc., in which the Court held that a non-compete was narrowly enforceable under Tennessee law, although it declined to enforce a Florida choice-of-law provision which might have led … Continue Reading
The use of LinkedIn to notify professional contacts of a change in employment did not constitute competition. according to a recent Massachusetts ruling. In KNF&T v. Muller, No. 13-3676-BLS1 (October 24, 2013), the Massachusetts Superior Court denied a request for a preliminary injunction where an employer alleged that a former employee violated her non-competition agreement by, among … Continue Reading
Robert K. Jones and Stephen B. Coleman from our Phoenix office have written on the Jackson Lewis website about a significant new court of appeals decision in Arizona striking down restrictive coveants in an employment agreement as overbroad. The article can be viewed here: Confidentiality, Non-Compete Agreements Held Unenforceable against Former Employee, Arizona Court Holds.… Continue Reading
We have previously written about tolling provisions on this blog. In a decision from the U.S. District Court for the District of Minnesota, Judge Patrick J. Schiltz held that, under Minnesota law, non-compete terms do not automatically reset upon violation. The decision in U.S. Water v. Watertech of America, No. 13-CV-1258 (PJS/JSM), concerned a motion for a preliminary … Continue Reading
The Wall Street Journal on line has taken a recent interest in non-competes in a pair of recent one-line articles (protected by pay wall) on August 12 and August 14, 2013. Both pieces cite to a study commissioned by the Journal showing that the number of lawsuits filed over non-competes went up 60 percent between 2002 … Continue Reading
The Indiana Court of Appeals determined in an unpublished opinion that an employer presented a prima facie case that a five-year restriction in a non-compete agreement was reasonable. Mayne v O’Bannon Publishing Co., 36 IER Cases 279 (Ind. Ct. App. 2013). Elizabeth Mayne operated a small commercial printing business in Louisville, Kentucky for some time … Continue Reading
The North Dakota Supreme Court upheld a judgment finding two employees of SolarBee, Inc., a North Dakota corporation that manufactures solar-powered water circulators, liable for a total of $621,800 in damages for breaching a non-compete agreement while still employed. The Court’s decision in SolarBee, Inc. v. Walker, No. 2012015 (June 24, 2013), is a reminder … Continue Reading
Earlier this year, Jackson Lewis opened a new office in San Juan, Puerto Rico serving clients throughout the Commonwealth. We thought we would take the opportunity to discuss the enforceability of non-competes under Puerto Rico law. As in many other jurisdictions, the validity and enforceability of non-competition agreements in Puerto Rico depends on the reasonableness of … Continue Reading
A New Jersey federal court recently granted a defendant-company’s motion to compel arbitration pursuant to a non-compete agreement between the plaintiff-company and two former employees who had discontinued employment with the plaintiff and went to work for the defendant. The case is Precision Funding Group, LLC v. National Fidelity Mortgage, Civ. No. 12-5054 (RMB/JS), 2013 U.S. … Continue Reading
A California federal court recently dismissed a lawsuit seeking a declaration that a non-compete agreement is unenforceable under California law, upholding the parties’ Washington forum selection clause. Meras Engineering, Inc. v. CH20, Inc., No. C-11-0389 EMC (N.D. Cal. Jan. 14, 2013). CH20 is a Washington corporation with its principal place of business in Washington. Meras Engineering, … Continue Reading
The inevitable disclosure doctrine is a common law doctrine that has been used by some courts to prevent a former employee from working for a competitor, even in the absence of a non-compete, because the former employee’s new job duties would inevitably require him to rely upon, use or disclose his former employer’s trade secrets. This … Continue Reading
An article recently posted on the Jackson Lewis website describes a bill introduced in the New Jersey State Assembly that would invalidate non-compete, non-disclosure, and non-solicitation agreements for former employees who are eligible for unemployment benefits. A similar proposal is under consideration in Maryland. We will continue to monitor this topic.… Continue Reading
Shawn Kee and Jessica Liss write on the Jackson Lewis website about two recent cases interpreting Missouri law on non-competes, Whelan Security v. Kennebrew, 379 S.W.3d 835 (Mo. 2012) and TLC Vision (USA) Corp. v. Freeman, 2012 WL 5398671 (E.D. Mo. Nov. 2, 2012).… Continue Reading
As previously reported in a legal alert issued by Jackson Lewis on May 12, 2011, Georgia Governor Nathan Deal signed the Georgia Restrictive Covenants Act into law almost two years ago, on May 11, 2011. Since that time, many employers have required employees to sign new covenants that comply with the law. The Georgia Restrictive … Continue Reading
A Federal Court in Nebraska issued a preliminary injunction enforcing an employee non-compete agreement in a case that explains, for the first time, what a Nebraska court may consider “solicitation.” The case, Farm Credit Services of America v. Opp, No. 8:12-cv-382 (D. Neb. 2013), involved a crop insurance salesman, Opp, who signed a non-compete agreement … Continue Reading
A recent study by three business and law school professors analyzed a random sample of 1,000 CEO employment contracts for 500 American companies over a seventeen year time span. The study determined how often the contracts included non-competes, whether the use of non-competes has increased over time, whether the use of non-competes is correlated to profitability, … Continue Reading
The Georgia Court of Appeals refused to enforce a forum selection clause in a restrictive covenant agreement entered into by a Georgia resident because it would have led to a different result than applicable Georgia law. Carson v. Obor Holding Company, LLC (Nov. 20, 2012). Obor Holding provides software and staffing services to clients in … Continue Reading
We have often been asked: if an employer fires an employee, can a non-compete or non-solicitation agreement be enforced? Some federal district courts interpreting New York law had said “no.” A recent decision from the Second Circuit Court of Appeals, Hyde v. KLS Professional Advisors Group, LLC, 2012 U.S. App. LEXIS 21111 (2nd Cir. October 12, … Continue Reading
