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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 -

Non-Competition Clauses: Enforceable or Just for Show?

by Field Law on

When can a non-competition clause actually stop someone from working? Or are these clauses just for show? Let's take a look at a couple of cases involving departing employees who find themselves in hot water with a former...more

One Year of the Defend Trade Secrets Act

May 16, 2017 marked the first anniversary of the Defend Trade Secrets Act. What has the year taught us about this new federal cause of action for trade secret misappropriation? Here are the top 13 lessons from the first...more

First Published Opinion From New Business Court Judge Conrad

by Brooks Pierce on

Business Court Judges don't have to issue written Opinions in cases granting Preliminary Injunctions. (G.S. § 7A-45.3 limits the obligation to issue a written Opinion to rulings rendered per NCRCP 12, 56, 59, and 60). ...more

If You Checked The Box, You’re Bound By The Contract

A recent decision by the Third Circuit Court of Appeals highlights the well-established legal maxim that “when a party enters into a signed, written contract, that party is presumed to understand and assent to its terms.”...more

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.

by Brooks Pierce on

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

by Epstein Becker & Green on

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...

by Seyfarth Shaw LLP on

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

by Seyfarth Shaw LLP on

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

by Seyfarth Shaw LLP on

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

by Brooks Pierce on

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

by Seyfarth Shaw LLP on

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

by Seyfarth Shaw LLP on

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...

by Seyfarth Shaw LLP on

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

by Allen Matkins on

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

by Brooks Pierce on

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

by Burr & Forman on

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

by Fisher Phillips on

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

by Baker Donelson on

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

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