Reasonableness Factors

News & Analysis as of

Nevada Supreme Court Rules that Overly Broad Non-Compete Agreements are Wholly Unenforceable

In July 2016, the Nevada Supreme Court held that when a non-compete agreement extends beyond what is necessary to protect the employer’s interest, the agreement is wholly unenforceable and courts may not modify or “blue...more

All or Nothing: Nevada Supreme Court Refuses to Adopt “Blue Pencil” Doctrine for Non-Compete Agreements

In a recent opinion, the Supreme Court of Nevada refused to adopt the “blue pencil” doctrine when it ruled that an unreasonable provision in a non-compete agreement rendered the entire agreement unenforceable. “Blue...more

Nevada Confirms Its Restrictive Covenant Law, But Rejects Blue Penciling

In the first decision to reach the Nevada Supreme Court on whether state district courts may modify or “blue pencil” non-competition agreements, the high court has concluded that doing so would violate Nevada law. Golden Road...more

Nevada Supreme Court Refuses To “Blue Pencil” Unreasonable Non-Compete

Nevada, unlike California, applies a reasonableness test to non-compete agreements. Although the Nevada courts haven’t identified a specific heuristic to be followed, a covenant not to compete will be found to be...more

Can Employers Discipline Employees for “Self-Help Discovery”? Massachusetts Decision Raises More Questions Than Answers

Employers know all too well that employees sometimes help themselves to documents the employer would like to keep confidential. This is precisely why many employers require employees to sign confidentiality agreements and...more

Don’t Be Unreasonable: U.S. Supreme Court Sets the Standard for Awarding Attorneys’ Fees in Copyright Cases

You have just received a cease and desist letter related to something that was posted on your company’s website.  Some person that you’ve never heard of before is threatening to sue you for thousands of dollars for copyright...more

Judge Uses Institution of IPR to “Bolster” Decision to Overturn Jury’s Finding of Willfulness

A Colorado district court has provided an example of how the decisions of the PTAB in an IPR proceeding can impact district court litigation. In XY, LLC v. Trans Ova Genetics, LLC, Case No. 1:13-cv-00876 (D. Colo.), Judge...more

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

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

A new broom: sweeper clauses in residential leases

Properly employed, sweeper clauses are designed to catch service charge costs that may be unforeseeable at the time of drafting. This is an essential fall back when drafting a long residential lease whose term will be...more

The Case For Reasonableness: Enforcing Forum Selection Clauses In Business Disputes

For companies that do business across state or national lines, forum selection clauses are more than mere boilerplate or afterthought provisions to a business transaction. Forum selection clauses can reduce uncertainties in a...more

Prosecutors Pierce Attorney-Client Privilege in Procurement-Fraud Investigation; Court Orders “Compliance” Advice Of Counsel to Be...

Organizations routinely seek the advice of counsel in complying with the complex, evolving Federal regulatory scheme. But a recent Federal prosecution for government-contracting fraud illuminates the stark difference between...more

It’s Called Sputnik!: Don’t Fall Behind in the E-Discovery Space Race

This week marks the 58th anniversary since the launch of Sputnik II, the first spacecraft in history to carry a living animal—a dog named Laika—into Earth orbit. But the Sputnik program, which began the space age in 1957,...more

Standard of Review in Discipline Matter

Professional Conduct Committee of the Saskatchewan College of Paramedics v. Bodnarchuk, 2015 SKCA 81, reinstating a decision of the College Discipline Committee. A paramedic was disciplined by a Discipline Committee of...more

Essential Protection: Restrictive Covenants of Your Employees

No one knows your company better than your employees. And while great employees can be your most valuable asset, disloyal employees can use their insider information to harm or compete against you. You need protection, and an...more

Pennsylvania Supreme Court allows insured to settle without consent of insurer defending under reservation of rights

Bad faith claims can have major consequences for insurers. Stopping the Setup gets into the minds of plaintiffs' lawyers and addresses the ways they try to create bad-faith claims against insurance companies. This overview...more

Data Subject Access Requests – Stick to What’s Reasonable, Proportionate, and Has the Proper Motive, Says UK Court

In August, the High Court, in Dawson-Damer & Ors v Taylor Wessing [2015] EWHC 2366 (Ch), refused an application to compel a UK law firm (“TW”) to comply with a data subject access request (“DSAR”) under the Data Protection...more

Fifth Circuit Revives SOX Whistleblower Claim But Rejects Allegations Not Exhausted Before OSHA

In Wallace v. Tesoro Corp., the Fifth Circuit revived a SOX whistleblower complaint that was dismissed by the U.S. District Court for the Western District of Texas, finding that the plaintiff’s alleged belief that the company...more

Employer Win in California – Say What??? Stress From Working Under Particular Supervisor is Not a Disability

Over the course of a career many workers experience the displeasure of dealing with a difficult supervisor — the type of individual whose mere presence in the workplace is a source of dread and whose name inspires feelings of...more

Are Liquidated Damages Down the Drain in California?

Liquidated damages can provide parties added incentive to perform all types of contracts, including commercial real estate contracts. But are they enforceable in California? The short answer is that they’re presumed to be...more

Alabama Rewrites Its Noncompete Statute

The Alabama legislature recently passed a comprehensive revision of the state’s noncompete statute, and Governor Bentley has signed the act into law. The new statute will become effective January 1, 2016. The new statute does...more

Court Affirms that Discovery Standard is Reasonableness, Not Perfection (Nebraska)

Malone v. Kantner Ingredients, Inc., 2015 WL 1470334 (D. Neb. Mar. 31, 2015). In this employment dispute, the plaintiffs moved for an order to request production of emails and invoices between the defendants and a...more

US Supreme Court Ruling Impacts Jail Operations

On June 22, 2015, the United States Supreme Court issued an important decision for all North Carolina counties operating county jails in which individuals are held detainees awaiting trial. In Kingsley v. Hendrickson, No....more

ESI Case Law Update 2015

In this Issue: - Introduction - Preservation - Proposed Amendments to Rule 37 - Search Methodology/Technology-Assisted Review - Proportionality - Cost-shifting - Form...more

The Four Factual Findings Necessary to Make an Award of Reasonable Attorneys’ Fees Stick in North Carolina

As a matter of course, a prevailing party cannot recover its attorneys’ fees from an opposing party in North Carolina. But, attorneys’ fees can be awarded if there is specific statutory authority. ...more

The Supreme Court's Omnicare Decision: Implications And Remaining Questions Regarding When Opinions Are Actionable Under The...

On March 24, 2015, the Supreme Court issued its much anticipated decision in Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund, No. 13-435, 2015 WL 1291916 (Mar. 24, 2015). With some significant...more

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