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Non-Compete Agreements › Contract Disputes

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Lathrop GPM

Washington Federal Court Grants, In Part, Distributor’s Motion to Dismiss Claim for Breach of a Noncompete Provision and Related...

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A federal court in Washington recently granted in part and denied in part a former distributor’s partial motion to dismiss claims for breach of a post-termination noncompete agreement, breach of the implied duty of good faith...more

Seyfarth Shaw LLP

Delaware Supreme Court Curbs Erosion of Forfeiture-for-Competition Protections

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Delaware has long been favored by businesses for many reasons, including its courts’ deference to parties’ ability to contract. Recently, however, the Delaware Chancery Court was seemingly less deferential to restrictive...more

Holland & Knight LLP

A Cautionary Tale from arrivia Inc. v. Rowley

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Enforceability of releases for unknown claims at the time of settlement is a well-established legal principle, as highlighted in the recent case, arrivia Inc. v. Rowley, No. CV-23-01039-PHX-DLR, 2023 WL 7386384 (D. Ariz. Nov....more

Bennett Jones LLP

The High Cost of Cost Indemnification: A Warning

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A contractual indemnification can require the losing party in a lawsuit to pay the winning  party's full legal costs, the Alberta Court of Queen's Bench recently confirmed in Ruel v Rebonne, 2022 ABQB 486 [Ruel]. While courts...more

Sheppard Mullin Richter & Hampton LLP

Ixchel v. Biogen: California B2B Noncompetes Do Not Per Se Violate B&P Section 16600, and Are Instead Subject to Rule of Reason

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Business-to-business contracts often concern trade secrets. Contracts such as NDAs, joint development agreements, license agreements, vendor agreements, and other commercial agreements commonly contain restrictive covenants...more

Seyfarth Shaw LLP

Massachusetts Superior Court Axes an Attempt to Expand the Scope of the Seminal Non-Compete Law Concerning Material Change in...

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The Massachusetts Superior Court recently held in Now Business Intelligence, Inc. v. Donahue that a temporary reassignment during a business slowdown, consisting of the addition of certain non-billable duties, does not...more

Harris Beach PLLC

Non-Competes and Other Restrictive Covenants: Two Perspectives, One Clear Picture

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For employers, non-compete agreements and other restrictive covenants, such as non-solicitation or non-disclosure agreements, can serve as a powerful tool to protect their business and defend their interests. However, these...more

Carlton Fields

New York Court Compels Arbitration of Commercial Marijuana Dispute

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The defendants moved to compel arbitration of a complex dispute concerning the parties’ investment in medical marijuana companies. The plaintiff claimed that the defendants breached a non-compete agreement and fiduciary...more

Holland & Knight LLP

Whether the “Economic Loss Rule” Applies To DTSA Claims

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A trade secret misappropriation claim can arise from the same facts as, and be joined with, a claim for breach of contract by the defendant, such as a breach of a covenant not to compete or breach of a non-disclosure...more

Burr & Forman

The Chicago Cubs, Errors, and Arbitration of Florida Non-Compete Agreements

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Some clients prefer to resolve disputes in arbitration. In theory, an arbitration proceeding can more quickly and — in some instances — more cost effectively resolve disputes. However because most arbitration clauses call for...more

Seyfarth Shaw LLP

No Economic Recovery Available For Breach Of A Non-Compete Set Forth In A Distributorship Agreement Which Bars Damages Awards

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Where a freely negotiated contract between two sophisticated companies included a provision barring an award of monetary relief for breach of contract, the court will enforce the provision as written and award no economic...more

Faegre Drinker Biddle & Reath LLP

Court Was Wrong to Re-Write Covenants

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In Prophet v Huggett [2014] ECWA Civ 1013, the Court of Appeal has overturned a recent decision of the High Court in which it had re-written a non-compete covenant to give it commercial effect. You may recall that we...more

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