News & Analysis as of

Breach of Contract Competition

Farrell Fritz, P.C.

Unpacking the (Un)Reasonableness of Non-Compete Provisions

Farrell Fritz, P.C. on

New York law generally does not favor non-compete agreements, viewing them as unreasonable restraint of trade. As a result, New York courts apply a rigorous standard when deciding whether to enforce these restrictive...more

BakerHostetler

Delaware Supreme Court Settles Forfeiture-for-Competition Question, Adopts Employee Choice Doctrine - Seventh Circuit Asks, ‘Are...

BakerHostetler on

Less than two months after the Delaware Supreme Court provided the employers, investment partners and other business leaders that trust in the stability of Delaware law to protect their critical business interests with the...more

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

Epstein Becker & Green

Preemption Questions Continue as FTC and NLRB Fight Restrictive Covenants

Epstein Becker & Green on

As federal administrative agencies wade further into rulemaking and adjudicative efforts to outlaw noncompetes and restrictive covenants, defendants are beginning to raise preemption arguments in response to state court...more

Kelley Drye & Warren LLP

Mars Sues Agency Over Breach of Exclusivity Provisions

Negotiating exclusivity provisions in agency agreements can often be difficult. Companies want to broadly prevent agencies from working for competitors, while agencies are reluctant to cut off other sources of work. In most...more

McGlinchey Stafford

The Bullet Point: A Commercial Law Bulletin - When can a non-party enforce a forum selection clause?

McGlinchey Stafford on

The Bullet Point is a biweekly update of recent, unique, and impactful cases in state and federal courts in the area of commercial litigation. We’re pleased to expand the Bullet Point from its previous coverage of Ohio case...more

Manatt, Phelps & Phillips, LLP

Third Circuit Reverses Injunction in Trade Secret Misappropriation Suit

The U.S. Circuit Court of Appeals for the Third Circuit took on the misappropriation of trade secrets recently, reversing a district court’s grant of a preliminary injunction halting competition by a company’s rival and two...more

BCLP

When Can You Argue Mitigation? CAT Rejects Supplier Mitigation Defence and Issues Guidance for Scope of Supplier Mitigation

BCLP on

A Competition Appeal Tribunal (CAT) judgment recently obtained by Royal Mail and BT has wide-ranging implications, not only for all competition follow-on damages claims but also many other forms of commercial damages claims....more

Littler

Ontario, Canada Court Reminds Employers that Improperly Drafted Restrictive Covenants are Unenforceable

Littler on

In Labrador Recycling Inc. v. Folino, 2021 ONSC 2195 (Labrador Recycling), Ontario’s Superior Court denied an employer’s motion for an urgent injunction to restrain its former employee from competing with it contrary to the...more

Manatt, Phelps & Phillips, LLP

Claims for Interference With At-Will Contracts Now Require Independently Wrongful Act

On August 3, 2020, the California Supreme Court held in Ixchel Pharma, LLC v. Biogen, Inc. that tortious interference with at-will contracts requires establishing wrongful conduct independent of interference itself. 9 Cal....more

Proskauer Rose LLP

Are Antitrust Risk Allocation Provisions in Merger Agreements Worthless?

Proskauer Rose LLP on

Megamergers that deprive the American consumer of competition are illegal. But the urge to merge is often so strong that antitrust risks rarely prevent behemoths from the attempt. Long before parties sign deals, issue press...more

Lewitt Hackman

Franchisee 101: Trashing the Competition

Lewitt Hackman on

In a misappropriation of trade secrets action, a franchisor sued a prospective franchisee, claiming breach of a non-disclosure agreement ("NDA") by operating a competing business. The prospective franchisee signed the NDA...more

Ward and Smith, P.A.

Reminder to North Carolina Employers: Take Time to Thoughtfully Craft Your Restrictive Covenants!

Ward and Smith, P.A. on

A recent decision of the North Carolina Court of Appeals serves as an important reminder to avoid the temptation to overreach when seeking to protect your customer relationships. Restrictive covenants prohibiting...more

McAfee & Taft

Tattoo artists’ war over customers sparks lawsuit

McAfee & Taft on

Ever been frustrated by a former employee unfairly using your confidential business information and trying to take your customers? As it turns out, tattoo artists have trade secrets, too. Keith “Bang Bang” McCurdy is the...more

Lewitt Hackman

FRANCHISEE 101: Cannabiz Accounting

Lewitt Hackman on

Tax service franchisor, H&R Block, was recently vindicated in having terminated a franchisee for violating an in-term non-compete covenant. A United States District Court granted the franchisor summary judgment in Devore v....more

Lewitt Hackman

Tax Franchisee Terminated For Sharing Space With CannaBiz

Lewitt Hackman on

In Devore v. H&R Block, the franchisor H&R Block was found to have lawfully terminated a franchisee for violating an in-term non-compete covenant, because the franchisee permitted its office manager and prior operator of the...more

Dorsey & Whitney LLP

How Important are Irreparable Injury Provisions in Non-Compete Agreements?

Dorsey & Whitney LLP on

Today’s workforce is more mobile than in past generations. Long gone are the days when an employee started and ended a career at the same company. ...more

Foley & Lardner LLP

Shhh ... Don't Tell Anyone: Tips on NDAs

Foley & Lardner LLP on

The Non-Disclosure Agreement (“NDA”) is a document that is very often prone to misuse in commercial practice. Often, when business teams from two companies get together, the first thing they do, almost as a box-checking...more

Fisher Phillips

Don’t Go Overboard with Overbroad Non-Competes: Illinois Federal Court Strikes Down Non-Compete Clause

Fisher Phillips on

Daniel Dumrauf was a Director with Medix Staffing Solutions, Inc., a Chicago-based staffing agency. Dumrauf worked at Medix’s Scottsdale, Arizona office. Dumrauf’s employment agreement contained a non-compete clause that...more

Fisher Phillips

California Jury Punishes Former Employees for Unfair Play-Only Lawful Competition is Sacrosanct!

Fisher Phillips on

Notwithstanding California's strong public policy in favor of lawful competitive behavior, California employees' duty of loyalty to their current employer reigns supreme. A violation of that duty can lead to costly jury...more

Orrick, Herrington & Sutcliffe LLP

The World in US Courts: Orrick's Quarterly Review of Decisions Applying US Law to Global Business and Cross-Border Activities

Alien Tort Statute (ATS)/Political Question Doctrine/Foreign Sovereign Immunity Act (FSIA)/ Act of State Doctrine - District Court Dismisses ATS Claim Where Alleged Conduct in US was not Directly Linked to Injuries...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - January 2016

Despite Finding Policy Application Misrepresentation, Jury Rules Against Policy Rescission - Why it matters: A federal jury concluded that Starr Surplus Lines Insurance Company did not have a valid basis to rescind the...more

Butler Snow LLP

Competitor’s Privilege a Competitive Advantage? Only if there’s not improper means!

Butler Snow LLP on

Tennessee recognizes the tort of interference with prospective business relations. But there’s an exception for competitors. One who intentionally causes a third person not to enter into a prospective contractual...more

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