News & Analysis as of

Restrictive Covenants Reversal

Davis Wright Tremaine LLP

January Surprise: Court Ruling on Post-Employment Restrictive Covenants in Delaware

Equity and capital forfeiture for competition provisions given less scrutiny than other post-employment restrictive covenants - Companies subject to Delaware law were handed a welcome surprise in a recent Delaware Supreme...more

Seyfarth Shaw LLP

Houston First Circuit Court of Appeals Joins the Growing Trend by Holding that the Pre-Amendment TCPA Does Not Protect Certain...

Seyfarth Shaw LLP on

In a case following a familiar trade-secret set of facts, on April 28, 2020, the Texas First District Court of Appeals in Houston reversed the trial court’s grant of a motion to dismiss under the Texas Citizens Participation...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

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts High Court Clarifies Standards for Judicial Review of Anti-Raiding Provisions in Restrictive Covenants

The Massachusetts Supreme Judicial Court (SJC), the Commonwealth’s highest court, recently clarified the standards applicable to analyzing nonsolicitation and anti-raid restrictive covenants following the sale of a business -...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

Winstead PC

Federal District Court Refuses To Dismiss Aiding And Abetting Breach Of Fiduciary Duty Claim Against A Law Firm

Winstead PC on

In Milligan v. Salamone, the Greenberg Taurig lawfirm represented the bankrupt company when it sued a president and board member. No. 1:18-CV-327-RP, 2019 U.S. Dist. LEXIS 41009 (W.D. Tex. March 14, 2019). Greenberg drafted...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

McAfee & Taft

Appeals court continues narrow interpretation of Oklahoma’s non-solicitation statute

McAfee & Taft on

Dealing with departing employees can be tricky. That’s why many companies require certain employees — particularly those with access to confidential or proprietary company information or customers — to sign written agreements...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

Foley & Lardner LLP

Wisconsin Court Strikes Clause Restricting Solicitation of Employees

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An engineer’s employment contract provision imposing a post-termination restriction against soliciting former co-workers to quit or to accept employment with a competitor, supplier, or customer is an unenforceable restraint...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

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

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

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