The Eighth Circuit Court of Appeals has affirmed a lower court decision granting judgment on the pleadings to defendant in non-compete dispute based on Arkansas law. The decision in NanoMech, Inc. v. Suresh rested in part on the fact that the non-compete did not include a geographic limitation and was otherwise overbroad as it would
Former Employee in Louisiana Bites Back, Files Suit Against Employer for Threatening to Enforce Non-Compete
Louisiana has strict requirements for enforcement of non-compete agreements which are not “favored” in the Pelican state. In a recent case, Boudreaux v. OS Restaurant Services, LLC, a former employee in Louisiana preemptively filed a lawsuit claiming a violation of Louisiana’s unfair trade practices statute and intentional interference with business relations after his former
Nike Lawsuit Against Former Designers Will Test Company Security Initiative
Athletic shoe manufacturer Nike filed suit on December 8, 2014 in Multnomah County Circuit Court in Oregon against three of its former designers alleging that the designers misappropriated Nike’s trade secrets and conspired with Adidas to start a new, competing business venture.
The three former designers, Denis Dekovic, Marc Dolce and Mark Miner, all resigned
Missouri Court of Appeals Rules Non-Compete Lacking Geographic Limitation, Not Tied to Confidential Information, Is Unenforceable
A Missouri employer failed in its attempt to enjoin a former employee from working for a competitor after a Missouri appeals court ruled his employment agreement was unenforceable as a matter of law. In Sigma-Aldrich Corp. v. Vikin, No. ED-100575, (Mo. Ct. App. Oct. 14, 2014), the Missouri Court of Appeals (Eastern District) upheld
Delay Leads to Denial of Request for Injunctive Relief in New Jersey Lawsuit
A recent decision from the United States District Court for the District of New Jersey highlights the perils of delay before applying for injunctive relief. In PTT, LLC v. Gimme Games, et al. No. 13-7161 (JLL/JAD), PTT, a slot machine developer, sued competitor Gimme Games and former PTT executives who started Gimme Games, for misappropriation,
Learning the Hard Way: Non-Competes and Subsequent Agreements
The Georgia Court of Appeals handed down a tough lesson for an employer in Mapei Corporation v. Prosser, A14A0368 (Ga. Ct. App. July 9, 2014). The Court of Appeals affirmed summary judgment for an employee on the claim he breached his non-compete with his prior employer. The Court found a subsequent confidentiality agreement signed
Kentucky High Court Nixes Non-Compete Supported Only By Continued Employment
The Kentucky Supreme Court has held that continued employment alone is not valid consideration for non-compete agreements. In Charles T. Creech, Inc. v. Brown, 2014 Ky. LEXIS 233 (Ky. 2014), Donald E. Brown was employed by Charles T. Creech, Inc. for over 18 years before he was asked to sign a non-compete agreement in
Pennsylvania Court Enforces Forum Selection Clause in Franchise Non-Compete Against Florida-Based Defendant, and His Non-Signatory Wife
In yet another example of an increasing willingness to enforce properly-drafted forum selection clauses in non-compete disputes, a federal judge in the Eastern District of Pennsylvania recently denied a motion to dismiss and motion for transfer of venue brought by the former franchisee defendants, a husband and
Use of Non-Competes Cited as Factor Against Independent Contractor Status
Requiring independent contractors to sign non-competes may contribute to a finding that they were misclassified employees entitled to overtime, according to a decision from the Northern District of Illinois. In Perez v. Super Maid, LLC, No. 11-C-07485 (N.D. Ill. July 14, 2014), the court granted a motion for summary judgment by the U.S. Department
North Carolina Court of Appeals Directs Trial Court to Rewrite Non-Compete Agreement
Take everything you thought you knew about North Carolina’s “blue pencil” doctrine and scribble it out – well, at least as it pertains to non-compete agreements between parties to the sale of a business.
Historically, North Carolina’s limited “blue pencil” doctrine prohibited a court from “drafting a new contract for the parties” by restricting the