Non-Compete Agreements Preliminary Injunctions

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 -
News & Analysis as of

Don’t Friend My Friends: Nonsolicitation Agreements Should Account for Social Media Strategies

As social media becomes an important part of many companies’ sales and branding strategies, issues relating to companies’ ability to protect their investments in such strategies are emerging. Indeed, this blog has previously...more

Defending A Former Employee On a Non-Compete Or For Misappropriation Of Trade Secrets? Read This.

Do you really have to rush to Court to obtain an injunction for a misappropriation of trade secrets? Maybe not. But for an injunction enforcing a non-compete agreement, maybe yes. ...more

Click Here — 3rd Circuit Enforces Restrictive Covenants Tied to Electronic Acceptance of Stock Award

On February 7, 2017, the Third Circuit affirmed a partial preliminary injunction order barring two former ADP employees from soliciting customers for their new employer for one year. This decision is notable as it affirmed...more

“It’s a Free Country, Right?” Court Declines to Enjoin Ex-Free Country Ltd. Employees From Contacting Customers on Purloined...

Within days of each other, your clothing company?Free Country Ltd.?loses two employees who decamp to a rival to set up a competing apparel line. You discover that just before leaving, they transferred some 50,000 documents...more

Top Five Employment, Labor & Workforce Management Issues of 2016

A major transition in government is well underway. As we look back over the past 12 months, we are reminded of employment, labor, and workforce management issues that remain top of mind to all employers. In this Take 5, the...more

Court Order to U-Haul: Haul Your Non-Compete Clauses Out of California

A California appellate court recently upheld a permanent injunction in Robinson v. U-Haul Company of California barring U-Haul from enforcing its non-compete covenants in California. U-Haul also was required to pay over...more

Texas Court of Appeals Finds Noncompete Agreement Inapplicable to Former President’s Post-Termination Activities Due to the...

On October 27, 2016, the Fort Worth Court of Appeals affirmed a lower court’s order denying an application for temporary injunction seeking to enjoin Thomas Musgrave, the former president of Henry F. Coffeen III Management,...more

THANKSGIVING EDITION [FROM THE ARCHIVES]: Court Protects Quizno’s Franchise Turkey Trade Secrets

This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship. In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an...more

Federal Precedents Under the DTSA Have Arrived

While the Defend Trade Secrets Act of 2016 (“DTSA”) has only been in effect for a few months, the first wave of cases raising DTSA claims have started to generate federal decisions. In what appears to be the first substantive...more

Rhode Island Trial Court Decision Could Spell Trouble for Employers Seeking to Enforce Restrictive Covenants Against Healthcare...

One of an employer’s first steps in a suit against a former employee to enforce a restrictive covenant is to seek a preliminary injunction to prevent the employee from continuing to violate his or her contractual obligations....more

You Can’t Put Lipstick On This Pig: Beauty Company’s Non-Compete Deemed Unenforceable

On March 25, 2016, a Massachusetts Superior Court judge struck down skin care salon Elizabeth Grady Face First, Inc.’s (“Elizabeth Grady” or the “Company”) attempt to make its non-compete agreement seem prettier than it...more

Sometimes It Might Not Be Worth It To Appeal The Denial Of A Preliminary Injunction

I don't think that it was worth it for TSG to appeal Judge Murphy's Order denying its Motion for a Preliminary Injunction on a covenant not to compete. That's true even though an injunction (though not on the covenant) was...more

Trend In The Courts: It’s Getting Harder To Obtain Preliminary Injunctions In Restrictive Covenant Cases

In recent weeks, courts almost routinely have been denying preliminary injunctive relief in cases alleging violation of non-compete and similar employment agreements. Three examples: Burleigh v. Center Point Contractors,...more

Court Decries Ambiguity Of Terminology Used In Non-Compete Agreement And Injunction

A preliminary injunction was entered against a fired executive of a roofer who, immediately after he was discharged, went to work for an alleged competitor. The district court held, and the Seventh Circuit agreed, that his...more

Non-Compete Injunction Denied, Ninth Circuit Remands For Reconsideration, But District Court Denies It Again, Declines Equitable...

As directed by the court of appeals, a district court judge reconsidered his denial of a non-compete covenant case injunction but reached the same result on reconsideration. He also stated why he would not have extended the...more

Restrictive Covenants – A Close Call Goes The Employer’s Way

A very recent federal court decision, A.H. Harris & Sons, Inc. v. Naso, 2015 WL 1420132 (D.Conn.), illustrates how judges weigh various facts when deciding to grant or deny a preliminary injunction in a restrictive covenant...more

New LLC Is Not Delivered By Sale Membership Interests

Readers of this blog should be well aware of California’s general antipathy to covenants not to compete. See links below. Other jurisdictions, however, are less averse. Assuming that a covenant not to compete is...more

Two Things You Should Know If You Are Appealing A Preliminary Injunction On A Covenant Not To Compete

If you are representing a client who has been subjected to an injunction enjoining him from violating a covenant not to compete, and you want to appeal, there are two things you ought to know. One is good for you, the other...more

Obtaining Enforceable Non-Compete Agreements: Timing And Geography Matter

Last month, a federal judge in Mobile, Alabama denied an employer’s request for a preliminary injunction seeking to stop that employer’s former employee from working for an alleged competitor. See Dawson v. Ameritox, Ltd.,...more

Sometimes Noteworthy Non-Compete Decisions Have No Non-Competes

As a non-compete litigator, I often scan the case reports looking for noteworthy non-compete decisions. In doing so, I look for the usual buzzwords of interest -- non-compete, trade secret, preliminary injunction, etc. But...more

Franchisors Must Act Quickly to Obtain Injunctive Relief on Non-Competition Covenants

A recent case from the United States Court of Appeals for the Eighth Circuit reaffirms the important principle that a franchisor, or any business, that seeks a preliminary injunction to prevent harm from a covenant breach...more

Liquidated Damages And Non-Competes

In many disputes over non-competition agreements, the litigation focuses on obtaining the temporary restraining order and/or preliminary injunction to stop the competition before the real damage is done....more

Florida Court Reverses Preliminary Injunction On Restrictive Covenant

If you have followed this blog, then you likely already know that restrictive covenants are legal and enforceable in Florida. You should also know that – although enforceable – restrictive covenants are strictly construed...more

Protecting Your Company's Secrets: Drafting and Enforcing Covenants Not To Compete

“Covenants Not To Compete” are essential tools used in the insurance industry, and in many industries, to prevent essential employees from leaving your company to work for a competitor and to take with them trade secrets or...more

Analysis Of A Winning Argument For Enforcing A Non-Compete Agreement At The Preliminary Injunction Stage

On December 18, 2012, the United States District Court for the Western District of Tennessee entered an Order granting an employer’s application for a preliminary injunction preventing its former employees from soliciting the...more

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