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
Ohio Appellate Court Sporks Plaintiff in Plastic Cutlery Non-Compete Dispute
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
Tennesse Court Rules Non-Compete Agreements Enforceable Against Two Former Executives
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
LinkedIn Notification Not Competition, Mass Court Holds
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
Confidentiality, Non-Compete Agreements Held Unenforceable against Former Employee, Arizona Court Holds
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
Federal Court in Minnesota Rejects Automatic Tolling of Non-Compete
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
Wall Street Journal Reports Increase in Non-Compete Lawsuits
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
Indiana Court Upholds Five-Year Restriction in Non-Compete Agreement
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
North Dakota Supreme Court Upholds Judgment for Competing in Breach of Employment Contract while Still Employed
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
Non-Competes in Puerto Rico – Do’s and Don’ts
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