Consideration

News & Analysis as of

Is An Offer Of At-Will Employment Adequate Consideration For A Non-Compete? Recent Court Rulings Split Three Ways

Three very recent decisions reflect the irreconcilable division of judicial authority regarding the adequacy of at-will employment as the sole consideration for an otherwise valid non-compete. Compare (a) Standard Register...more

Oregon Tightens Restrictions on Noncompetition Agreements

Oregon strictly regulates the use of noncompetition agreements by statute, generally limiting them to (a) exempt employees earning more than the median income for a family of four (approximately $74,000 currently), and (b)...more

Missouri Supreme Court “Calls an Audible,” Upholds Arbitration Agreement

In recent years, Missouri courts have seemed reluctant to enforce arbitration agreements entered into between employers and employees. But in a recent decision, the Missouri Supreme Court reversed that trend and compelled...more

Quirky Question #262, An update on Wisconsin non-competes

Question: We are a Wisconsin employer that recently lost a number of employees to a direct competitor in our region. As a result, we are now in the process of having all of our employees sign non-compete agreements...more

Wisconsin Joins Illinois in Addressing Whether Continued Employment Constitutes Lawful Consideration for Mid-Stream Non-Competes

The Wisconsin Supreme Court recently brought much needed clarity to Wisconsin employers — and helpful guidance for other jurisdictions — in ruling that continued at-will employment constitutes legal consideration to support a...more

Recapping Major Non-Compete News from Around the Nation

..New Mexico has passed a new law that limits physician non-compete agreements. Although the law places some limitations on restrictive covenants for doctors, it is not an outright ban of such restrictions (of the...more

Wisconsin Supreme Court Holds That Continued Employment Constitutes Adequate Consideration for Restrictive Covenants

The Wisconsin Supreme Court recently issued a decision holding that continued employment is adequate consideration for restrictive covenants. In Runzheimer International, Ltd. v. Friedlen, et al., No. 2013AP1392 (April 30,...more

Consideration for Covenants

The recent UK High Court decision in Re-use Collections Limited v Sendall & May Glass Recycling Ltd, highlights to employers that new restrictive covenants will not be enforceable against employees unless substantial...more

Wisconsin Supreme Court: Continued Employment Is Lawful Consideration for a Non-Compete

On April 30, 2015, the Wisconsin Supreme Court took a stand on a hot-button for employers by holding that continued at-will employment is legal consideration that will support a reasonably drafted restrictive covenant signed...more

Noncompete Law in France—Payment of a Noncompete is Required During Garden Leave

In France, a valid noncompete clause in an employment contract must provide for the payment of financial compensation to the departing employee, as long as the employee remains bound by and complies with the clause’s terms...more

New Arkansas Law Boldly Embraces Noncompetition Provisions

On April 2, 2015, Arkansas enacted a new law (the Act) that greatly expands the enforceability of noncompete agreements in the state. The Act makes striking changes to Arkansas non-compete law. ...more

Illinois Restrictive Covenants: The “Gray” Bright Line Regarding Sufficient Consideration

Illinois non-compete law continues to wend a circuitous path through the employment landscape, making it occasionally difficult for employers and employees alike to predict outcomes in these cases....more

Post Termination Restrictions: Always Consider Consideration

The recent case of Re-Use Collections Ltd v Sendall [2014] EWHC 3852 (QB) is a timely reminder to employers everywhere of the importance of providing meaningful consideration when attempting to tie-up existing employees with...more

Recent Illinois Federal Court Rulings Cloud Fifield’s Bright-Line Test

Two recent rulings in the Northern District of Illinois, Eastern Division and the Central District of Illinois, Peoria Division, have further blurred the “bright line” two-year consideration rule established by the Illinois...more

Re-examining the M&A Playbook for Non-consenting Stockholders in Light of Cigna Health

In a case that is likely to impact M&A structuring for certain transactions, the Delaware Court of Chancery held that (1) stockholder release obligations found only in a letter of transmittal and not in the related merger...more

Fifield Update: Two Federal District Courts Conclude That The Illinois Supreme Court Will Ultimately Reject Fifield's Two-Year...

In the last issue of The Fast Laner, we reported that the Illinois Court of Appeals, Third District, followed Fifield v. Premier Dealer Servs. and held that, in the absence of other consideration, continued at-will employment...more

Illinois Court Rulings Vary on Consideration for Noncompetes

Recent decisions from the U.S. District Court for the Northern District of Illinois and the Illinois Appellate Court for the Third District (consisting of Bureau, Fulton, Grundy, Hancock, Henderson, Henry, Iroquois, Kankakee,...more

Illinois Federal Court Rejects Bright-Line Rule on Consideration Needed for Competition Restrictions

On February 6, 2015, the U. S. District Court for the Northern District of Illinois in Chicago rejected the bright-line rule, created by the Illinois Appellate Court in the often maligned Fifield v. Premier Dealer Servs.,...more

Illinois Courts Continue To Apply Fifield; Employers Should Closely Examine Non-Competes To Ensure Enforceability

In 2013, the Illinois Appellate Court issued a decision, Fifield v. Premier Dealer Servs., Inc., which held that the promise of at-will employment was insufficient consideration to support an otherwise enforceable non-compete...more

New Year’s Resolution for Missouri Employers: Arbitration Agreements In Light of Jimenez v. Cintas Corporation

Still looking for a New Year’s resolution? The Missouri Court of Appeals rang in 2015 by refusing to enforce an arbitration agreement between an employer and an employee. The decision continues the robust trend in Missouri of...more

SEC Charges Attorney For Allegedly False Legal Opinion

Last week, the Securities and Exchange Commission announced charges against an attorney who was allegedly involved in the filing of false registration statements.  The SEC’s order instituting proceedings alleges that the...more

Minnesota Supreme Court Holds that Medical Staff Bylaws Are an Enforceable Contract

In an opinion released on December 31, 2014, the Supreme Court of Minnesota held that medical staff bylaws can be an enforceable contract and that a hospital’s medical staff (as an unincorporated association) can have the...more

Food Fights Make Bad Law

The axiom "hard facts make bad law" never held so true than in the case of the Minnesota Supreme Court's decision in Medical Staff of Avera Marshall Regional Medical Center vs. Avera Marshall, issued on December 31, 2014. ...more

Is “One Dollar” Sufficient for a Patent Assignment?

You may have read the recitals or introductory clauses in a license or an assignment agreement. In most cases, these clauses are just skimmed, if they are reviewed at all. In a recent decision of the US Federal Circuit Court...more

Private Company M&A: Post-Closing Purchase Price Adjustment Provisions: New Decision Holds Some Common Mechanics Unenforceable

In private company acquisitions, it is common for the buyer to require that a portion of the merger consideration be set aside in escrow as an accessible source of funds to cover the buyer’s post-closing indemnification...more

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