Noncompete News: Non-Solicit Relating To Former Customers Found Unenforceable

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Less is more. That is the theme of this month's Noncompete News, which addresses a decision by the Georgia Court of Appeals rendered just a few weeks ago. An insurance company entered into a written "confidentiality and non solicitation agreement" with one of its executives. A few years later, the executive decided to resign and form his own business. The executive informed the company that he was resigning and planned to open a competing business, but assured the company that he would honor his non-solicitation agreement. A few months after he left the insurance company to start his own business, the insurance company sued the former executive for, among other things, violation of the non-solicitation of customers provision.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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