Restrictive Covenants, Non-Compete Agreements

You Can't Reverse Blue-Pencil a Non-Compete

by Kenneth Vanko | Clingen Callow & McLean, LLC on 5/14/2013

By now, I hope readers of this blog would be aware that the title of this post simply reinforces the obvious....more

Bill introduced in New Jersey Legislature would invalidate restrictive covenants for individuals collecting unemployment benefits

by Ruth A. Rauls | Saul Ewing LLP on 5/9/2013

Currently pending in the New Jersey State Legislature is a bill that, if passed, would invalidate any covenant, contract or agreement not to compete, not to disclose or not to solicit, entered into by any individual with the...more

Supreme Court of Georgia Rejects Independent Claim for "Inevitable Disclosure"

by Kenneth Vanko | Clingen Callow & McLean, LLC on 5/8/2013

The "inevitable disclosure" doctrine is one of the most discussed, controversial topics in unfair competition law. The commentary among academics and bloggers reminds me of the ongoing debate over the proper scope of the...more

Non-Party Employer Made to Pay Costs in Restraint Litigation

by Bryan Belling, Matthew Parker | K&L Gates LLP on 5/8/2013

On 1 May 2013, the Supreme Court of New South Wales handed down judgment in HRX Pty Ltd v Scott [2013] NSWSC 451 (HRX v Scott). In doing so, the Court sent a clear message to employers about the risks associated with...more

Chinese Supreme Court Guidelines Make It Easier for Employers to Enforce Non-Compete Covenants

by Ron Cai, Victoria Ding | Davis Wright Tremaine LLP on 5/6/2013

On Jan. 18, 2013, the Supreme People’s Court of China promulgated Judicial Interpretation IV on Several Issues Concerning the Application of Law in Hearing Labor Dispute (the “Interpretation”). The Interpretation went into...more

NJ Lawmakers: Invalidating Restrictive Covenants Will Assist the Unemployed

by Laura A. Kowal, Steven Suflas | Ballard Spahr LLP on 4/26/2013

Citing the state’s jobless rate, three New Jersey state assemblymen are challenging the longstanding employer practice of restricting the post-employment activities of employees who are terminated or resign. On April 4, 2013,...more

Florida Court Reverses Preliminary Injunction On Restrictive Covenant

by Peter C. Vilmos | Burr & Forman on 4/24/2013

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

Employers Just Get No Satisfaction: NH Enacts Law Restricting Use Of Non-Compete Agreements

by Downs Rachlin Martin PLLC on 4/23/2013

Employers in New Hampshire now must comply with further restrictions on their ability to enforce non-compete and anti-piracy agreements. Venturing further into the already murky area of the enforceability of such agreements,...more

Settlements (Part 3 of 3): Dealing With a Defendant's Bankruptcy in Non-Compete Litigation

by Kenneth Vanko | Clingen Callow & McLean, LLC on 4/17/2013

This is largely a plaintiff-centric column, offering some practical points to consider when assessing the risk of bankruptcy in connection with non-compete (or other competition) litigation. Though many non-compete suits...more

Think Your Company's Confidential Information Is Safe? Think Again!

by Christopher Duke | Akerman Senterfitt on 4/10/2013

Password encrypted computers, locked file drawers, swipe cards allowing for restricted access. These are all measures taken by businesses to protect their confidential business information and trade secrets. While these steps...more

The Parameters of "Solicitation" in an Era of Non-Solicitation Covenants

by David Johnson | Butler, Snow, O'Mara, Stevens and Cannada,... on 2/27/2013

Originally published in the ABA Journal of Labor & Employment Law - Volume 28, Number 1, Fall 2012. I. Introduction - "I didn't solicit them; they approached me." That is a common defense invoked by someone accused...more

Focused on Franchise Law - February 2013

by Barry Kurtz on 2/26/2013

In This Issue: - Franchisor 101: Are Covenants Not-To-Compete Dischargeable In Bankruptcy? - Franchisee 101: Aloha-Distributorships Are Not Franchises - Mark Melton Has Become Of Counsel To The Firm...more

Non-Compete / Non-Solicit Covenants: Ontario Court of Appeal Provides Guidance on Requirements for Enforceability

by Gerard Kennedy, David Stamp | Osler, Hoskin & Harcourt LLP on 2/7/2013

The Ontario Court of Appeal’s February 5, 2013 decision in Martin v. ConCreate USL Limited Partnership, 2013 ONCA 72 analyzes the non-competition and non-solicitation covenants applying to a former company President (Martin)....more

Florida Appellate Court Says: “Independent Contractor” Still An Employee For Purposes Of Enforcing Non-Compete Agreement

by Peter C. Vilmos | Burr & Forman on 2/6/2013

You hire an employee and pay her a salary. In order to earn more money at your business, she voluntarily chooses to transition to “independent contractor” status. Question: Does that transition trigger the non-compete...more

Tax Topics: Restrictive Covenants — The Final Chapter (For Now)— Part I

by Mark Woltersdorf | Dentons on 1/22/2013

This article discusses proposed legislation dealing with the taxation of restrictive covenants. Due to its length, it is divided into two parts. Part I addresses the history, basic inclusion rules, tax treatment to the...more

How To Represent Prospective Franchisees And Franchisors

by Mark Miller | Jackson Walker on 1/12/2013

FRANCHISING PRIMER - I. INTRODUCTION - A. In General Franchising is a method of distribution that combines the advantages of a central specialized system with the capital and micro-management of local independent...more

Medical Device Industry Remains a Hotbed for NonCompete Litigation

by Susan M. Guerette | Fisher & Phillips LLP on 12/18/2012

A recent opinion stemming from a lawsuit between two competitors in the medical device industry reminds us of the old adage “be careful what you wish for.” In Howmedica Osteonics Corp. v. Zimmer, Inc., the plaintiff seemed to...more

Watch Your Assets Series Part Four: Key Injunction Strategies

by John C. Glancy, Tobias E. Schlueter | Ogletree, Deakins, Nash, Smoak & Stewart,... on 12/12/2012

In this series of blog posts, we have examined the use of injunctive relief in state and federal courts in response to employees who have misappropriated confidential information and trade secrets, who have solicited clients...more

Georgia Case Demonstrates Importance of Addressing Choice of Venue and Law Clauses

by Kenneth Vanko | Clingen Callow & McLean, LLC on 12/1/2012

Readers know from prior posts that Georgia is one of the "red-flag" states when it comes to non-compete disputes....more

California Court Affirms That Customer Lists Can Qualify As Trade Secrets

by Ogletree, Deakins, Nash, Smoak & Stewart,... on 11/14/2012

Wanke, Industrial, Commercial, Residential, Inc. v. Superior Court, 2012 WL 4711888 (Cal. App. 4th, Oct. 4, 2012): In Wanke, the appellate court affirmed that under some circumstances, a company’s customer list can qualify as...more

California Court Affirms that Customer Lists Can Qualify as Trade Secrets

by Michael J. Nader | Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/24/2012

Under California’s trade secret laws, a trade secret is information that (a) is not generally known in the industry, to the public, or to others who can realize economic value from its disclosure or use; (b) has independent...more

California Appellate Decision Applies a Limited Exception to California’s General Rule Prohibiting Restrictive Covenants

by Michael J. Nader | Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/18/2012

In a decision from California’s Fourth Appellate District, Fillpoint, LLC v. Maas et al., 208 Cal. App. 4th 1170 (Aug. 24, 2012), the court confirmed California’s general rule prohibiting restrictive covenants, as well as the...more

Continued Employment as Consideration in Illinois—A Short Primer

by Tobias E. Schlueter | Ogletree, Deakins, Nash, Smoak & Stewart,... on 8/22/2012

Following the Illinois appellate court decisions in Diederich Insurance Agency, LLC v. Smith, 952 N.E.2d 165, 169 (5th Dist. 2011) and Brown & Brown, Inc. v. Mudron, 887 N.E.2d 437, 441 (3d Dist. 2008), it is well settled in...more

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Restrictive Covenants › Non-Compete Agreements