In Bradley V. Health Coalition, a salesman for a health products company signed a non-compete covenant whereby he would not compete for a period of two years after the termination of employment. The covenant not to compete prohibited the solicitation of "any active, paid up customers of the corporation." After termination, Bradley took a job with one of plaintiff’s competitors, and plaintiff filed suit to enforce the non-competition agreement. The trial court granted an injunction and refused to hear Bradley’s defense of “first breach,” which would excuse him from performance. Bradley argued that the employer had materially breached the employment agreement by wrongfully refusing to pay commissions which he had earned, and he was therefore released from any further obligation to observe the noncompetition agreement.
The case can also be located at: http://www.mlmlegal.com/legal-cases/Bradley_v_HealthCoalitionInc.php
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