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Non-Compete Agreements › Reversal

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 -
Paul Hastings LLP

Delaware Supreme Court Rejects “Reasonableness” Test for Forfeiture-for- Competition Provisions

Paul Hastings LLP on

Last week, the Delaware Supreme Court reversed a Chancery Court decision that we wrote about previously, which invalidated a forfeiture-for-competition provision as an unreasonable restraint of trade. The Ainslie et al. v....more

White & Case LLP

How long is too long? Construing non-compete restrictions in shareholders’ agreements

White & Case LLP on

Non-compete restrictions for key stakeholders are common in shareholders' agreements. In Guest Services Worldwide v Shelmerdine, the Court of Appeal upheld a 12-month post-departure restriction, rejecting arguments that...more

Dechert LLP

UK Supreme Court issues important decision upholding non-compete

Dechert LLP on

The UK Supreme Court has today published its long-awaited judgment in Egon Zehnder Ltd v Tillman. It held that a six month post-termination non-compete covenant was enforceable against a departing employee even though it...more

Ward and Smith, P.A.

Bankruptcy Discharge of Debts for Willful and Malicious Injury

Ward and Smith, P.A. on

Can a debtor discharge a debt arising out of a deliberate or intentional act that causes injury to you? A recent article addressed the general issue of discharging debts in bankruptcy and various grounds for excepting...more

Rosenberg Martin Greenberg LLP

In re: Muhs “Willful and Malicious” Does Not Mean “Willful and Malicious”

Rosenberg Martin Greenberg LLP on

In In re Muhs, the United States Court of Appeals for the Fourth Circuit was called upon to decide whether “the meaning of ‘willful and malicious’ under Alaska law is identical to the meaning of ‘willful and malicious’ under...more

Payne & Fears

Employment Law Developments and Trends in 2018 for Nevada Employers

Payne & Fears on

Employment law is a dynamic practice area in which new law develops each year. Last year was no exception. This article, originally published in Nevada Lawyer by Matthew L. Durham and Chad D. Olsen, discusses notable...more

Burr & Forman

SC body bag noncompete case exhumed, revisited

Burr & Forman on

Two years ago, we wrote about a noncompete decision in which a special referee found a business seller had breached a sales agreement by violating both a noncompete covenant and an exclusive sales provision contained in the...more

Burr & Forman

Non-Competes in the Employment Context Revisited

Burr & Forman on

In 2016 we wrote about a non-compete decision where special referee found that a seller of a business had breached a sales agreement by violating both a non-compete covenant and an exclusive sales provision contained in the...more

Payne & Fears

Nevada Supreme Court Affirms That Non-Compete Agreements Must be Limited in Geographical Scope

Payne & Fears on

Although rules against broad geographic restrictions in non-compete agreements may be outmoded or “hopelessly antiquated” in this digital age (see Accelerated Care Plus Corp. v. Diversicare Mgmt. Servs. Co., No....more

Cozen O'Connor

I-16 – Kneeling, Indefinite Leave, DC Updates, Non-Compete Consideration, and Pretty as a Protected Class

Cozen O'Connor on

This episode discusses kneeling in the NFL/workplace, indefinite leave entitlement, and sufficient consideration for non-competes, provides an update from DC on OT exemptions and class action waivers, and questions whether...more

Winstead PC

Court Reverses Judgment Dismissing Breach Of Fiduciary Duty Claim Because No-Evidence Summary Judgment Motion Was Not Sufficiently...

Winstead PC on

In Tex v. Iom, a former employer sued a former employee based on a covenant not to compete and breach of fiduciary duty and sued the new employer for tortious interference. No. 12-14-00254-CV, 2016 Tex. App. LEXIS 7317 (Tex....more

FordHarrison

Eighth Circuit Finds Non-Competition Agreements Assignable to Successor Employer in Asset Purchase Without Employees' Consent

FordHarrison on

The United States Court of Appeals for the Eighth Circuit recently held that a successor employer, who was assigned non-competition agreements as part of an asset purchase, could seek to enforce the non-competition agreements...more

Foley & Lardner LLP

On Sale Bar Invalidates Safyral, Beyaz Folate Patent

Foley & Lardner LLP on

In Merck & CIE v. Watson Laboratories, Inc., the Federal Circuit found communications between Merck and a potential joint venture partner amounted to a commercial offer to sell that invalidated the Orange Book-listed folate...more

Seyfarth Shaw LLP

Bring Out the Body Bags: Seller’s Covenant, In Asset Sales Agreement, Not To Compete Within 150 Miles For 10 Years Unenforceable

Seyfarth Shaw LLP on

Palmetto bought the assets of Knight Systems’ mortuary transport business. The agreement of purchase and sale included (a) Palmetto’s commitment to buy body bags, at specified discounted prices, exclusively from Knight...more

Parker Poe Adams & Bernstein LLP

South Carolina Court of Appeals Says 150-Mile Geographic Restriction in Non-Compete is Unreasonable

Parker Poe Adams & Bernstein LLP on

South Carolina courts evaluate the enforceability of non-compete provisions executed in the employment context and in connection with the sale of the business under the same reasonableness test. To be enforceable in South...more

Womble Bond Dickinson

NC Supreme Court Reaffirms Strict Blue Pencil Doctrine for Restrictive Covenants

Womble Bond Dickinson on

The North Carolina Supreme Court recently reaffirmed that the power of North Carolina courts to “blue pencil” restrictive covenants is extremely limited, even when an agreement purports to give a court express authority to...more

Brooks Pierce

North Carolina Supreme Court Re-Affirms Classic View of "Blue-Pencil Doctrine" for Non-Competition Agreements

Brooks Pierce on

The North Carolina Supreme Court, in a long-awaited decision, reaffirmed the Court's historic view on the "blue-pencil" doctrine in North Carolina as it relates to non-competition agreements. In Beverage Systems Of The...more

Seyfarth Shaw LLP

North Carolina Courts Are Forbidden To “Blue Pencil” An Unenforceable Non-Compete

Seyfarth Shaw LLP on

Reversing a 2-1 decision of the North Carolina Court of Appeals, the state’s Supreme Court held unanimously that an assets purchase-and-sale contract containing an unreasonable territorial non-competition restriction is...more

Parker Poe Adams & Bernstein LLP

North Carolina Supreme Court Reaffirms Strict "Blue Pencil" Rule for Non-Competes

Parker Poe Adams & Bernstein LLP on

When it comes to modifying the terms of a non-competition agreement deemed overbroad or unreasonable, North Carolina has long held to the blue pencil rule. Unlike many other states, North Carolina judges do not have the...more

Williams Mullen

Supreme Court Upholds North Carolina’s Blue Pencil Doctrine Impacting Non-Competes

Williams Mullen on

On March 18, 2016, the North Carolina Supreme Court reasserted the state’s strict blue pencil doctrine by reversing the Court of Appeals in Beverage Systems of the Carolinas, LLC v. Associated Beverage Repair, LLC, et al....more

Skadden, Arps, Slate, Meagher & Flom LLP

Employment Flash - February 2013

Skadden, Arps, Slate, Meagher & Flom LLP on

In This Issue: - Ohio Supreme Court Reverses Decision on Surviving Merger Entity’s Ability to Enforce Noncompetition Agreements - “Sweet” Decision for California Employers: Court Approves Time Rounding in Case...more

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