News & Analysis as of September 20, 2024

Non-Compete Agreements › Business Court

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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 -

North Carolina Business Court Dismisses Overbroad Non-Compete

Parker Poe Adams & Bernstein LLP on 3/31/2023

When we are asked by a client to review their form employee non-competition agreement, we often see companies using documents found on the internet that were clearly written for use in states other than North Carolina. Last...more

Non-Compete News: Restrictive Covenant Act Case Decided by Georgia State-Wide Business Court

FordHarrison on 7/1/2021

In May 2011, Georgia’s Restrictive Covenant Act (OCGA 13-8-50 et seq.) (“RCA”) became effective and applied to all agreements executed on or after May 11, 2011. In 2020, the Georgia State-wide Business Court (“Business...more

Limiting Access to Non-Specialized Suppliers Can Be a Legitimate Business Interest

Womble Bond Dickinson on 4/21/2021

Where a business’ non-compete employment agreement precluded its former employee from contacting its suppliers, such restriction could constitute a legitimate business interest. KNC Technologies v. Tutton, 2021 NCBC 25 (J....more

North Carolina Court Upholds 10-Year Restrictive Covenant Between Employer And Former Employee

Jackson Lewis P.C. on 4/14/2021

When one thinks of a “reasonable” temporal scope for a restrictive covenant between employer and employee, usually that period is measured in months or years, not decades. But as a recent North Carolina decision reminds us,...more

Indefinite Covenants Within License Agreement May Not Be Enforceable

Womble Bond Dickinson on 8/14/2020

Where a software license agreement precluded the licensee from developing similar software for an undefined period of time, the license agreement inhibited “free trade” and was therefore unreasonable and unenforceable. Triage...more

Someone Steal Your Confidential Information? You Might Just Be Out Of Luck

Womble Bond Dickinson on 12/17/2019

Where a business alleges that a former employee stole its confidential information and gave it to a competitor which then used it to compete, the business has no claim for unjust enrichment against the former employee or...more

North Carolina Business Court Addresses Consideration Requirement for Covenant Not to Compete

Maynard Nexsen on 9/21/2017

In American Air Filter Co., Inc. v. Price, No. 16 CvS 13610, 2017 WL 2797794 (N.C. Super. Ct. June 26, 2017), the plaintiff’s former employee signed an employment agreement that renewed automatically each year. The agreement...more

The NC Businesss Court On Non-Solicitation And Non-Inducement Provisions

Brooks Pierce on 8/10/2016

There is more discussion of non-solicitation clauses and non-inducement clauses in Judge McGuire's opinion last week in Sandhills Home Care,, LLC v. Companion Home Care-Unimed, Inc., 2016 NCBC 59, than I think that I've ever...more

There's A Difference Between "Confidential And Proprietary Information" And A Trade Secret

Brooks Pierce on 6/24/2015

I can't remember the last time that the Business Court granted a motion opposing the designation of a case as a mandatory complex business case. And since the Business Court Modernization Act went into effect in October...more

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Non-Compete Agreements › Business Court

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