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Restrictive Covenants

King & Spalding

Minority Investor Protections in Project Joint Ventures

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Global investment into large-scale projects in infrastructure, energy, natural resources and heavy industry continues against an uncertain backdrop of the COVID-19 pandemic, heightened trade tensions and regional geopolitical...more

Fisher Phillips

Employees Laid Off As A Result Of COVID-19 Ask Courts To Find Their Non-Compete Agreements Unenforceable

Fisher Phillips on

Since the onset of COVID-19 and the related business shut-downs, employers across the country have been forced to make the difficult decision to lay off or terminate many of their employees. Of the tens of millions who have...more

Husch Blackwell LLP

The Language Used In Documents, Amendments And Motions Matters

Husch Blackwell LLP on

Your Association should ensure that the language and definitions in governing documents reflect the intentions of the Association. If they don’t, amend them, don’t just pretend they say something they don’t...more

Lewitt Hackman

Franchisor 101: Taking the Red Pill on Non-Competes

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Franchisors and franchisees in California have long conducted themselves based on precedent that voids post-termination covenants against competition in a franchise agreement in California. Recently, a franchisor’s ability to...more

Ward and Smith, P.A.

Five Things to Consider When Selling Your CBD Business

Ward and Smith, P.A. on

For many business owners, the intended exit strategy is to sell to a competitor or a larger company, thereby taking advantage of the upside on the value they have created through years of diligent and hard work building a...more

Fox Rothschild LLP

Remote Working Means It’s Time To Revisit Your Restrictive Covenants

Fox Rothschild LLP on

The COVID-19 pandemic has accelerated an already shifting work landscape. Prior to the pandemic, some employees in certain specific positions worked remotely. Now, by necessity, the practice has become widespread. With this...more

Seyfarth Shaw LLP

Fifth Circuit Holds that Reformation of Texas Non-Competes Is Authorized, and Perhaps Required, at Preliminary Injunction Stage

Seyfarth Shaw LLP on

On August 7, 2020, the Fifth Circuit addressed an issue presently undecided by the Texas Supreme Court; namely, whether reformation of an overbroad non-compete restriction is appropriate, and perhaps even required, at the...more

Bradley Arant Boult Cummings LLP

Everything You Need to Know (And Probably Don’t) About Covenants Not to Compete - Louisiana

The next state in our series exploring non-compete agreements is Texas’ neighbor to the east, Louisiana. As I like to say, when you travel east and cross the Sabine River from Texas to Louisiana all the words change but the...more

Seyfarth Shaw LLP

Louisiana Expands its Non-Compete Statute in Favor of Companies

Seyfarth Shaw LLP on

In a strengthening of company contractual rights, the Louisiana Legislature recently expanded its state non-compete statute by permitting a corporation, partnership, or limited liability company to enter into agreements with...more

Hogan Lovells

Restrictive covenants – more likely to be enforceable, but don’t forget competition law

Hogan Lovells on

A recent Supreme Court judgment has clarified one of the routes to challenging covenants limiting land use. It has adopted a new approach to assessing the old question of what is a “restraint of trade”? The judgment did not...more

Mintz - Intellectual Property Viewpoints

Keeping (Trade) Secrets Amid a Reduction in Force

With the US economy officially in a recession as of June and business closures continuing due to rising coronavirus infection rates, more companies may need to conduct layoffs in the coming months. Although discharging...more

Faegre Drinker Biddle & Reath LLP

Part 26 of “The Restricting Covenant” Series: COVID-19 Edition

The global COVID-19 pandemic continues to impact employers and their employees’ work activities in a variety of ways. Millions of workers have been terminated, laid off or furloughed. Companies have shifted to remote...more

Weintraub Tobin

The Rule Of Reasonableness: Non-Compete Provisions In California Business Contracts

Weintraub Tobin on

The California Supreme Court in the 2008 case, Edwards v. Arthur Andersen LLP, ruled that a provision in an employment agreement that prevented an employee from competing with his former employer following the termination of...more

Womble Bond Dickinson

Indefinite Covenants Within License Agreement May Not Be Enforceable

Womble Bond Dickinson on

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

Epstein Becker & Green

California Supreme Court Applies Rule of Reason Test for “Business Only” Restrictive Covenants

Epstein Becker & Green on

In Ixchel Pharma, LLC v. Biogen, Inc., 20 Cal. Daily Op. Serv. 7729, __ P.3d __(August 3, 2020), the California Supreme Court made it easier for businesses to enforce restrictive covenants against other businesses. This...more

Seyfarth Shaw LLP

Rare First Circuit Decision Invalidating NDA and Overturning Misappropriation Verdict Serves as a Cautionary Tale

Seyfarth Shaw LLP on

In a rare appellate decision on enforceability of non-disclosure agreements and a plaintiff’s burden to establish the existence of trade secrets, the First Circuit recently overturned a district court summary judgment order...more

Littler

Revisiting Restrictive Covenants in a Commercial Setting: The California Supreme Court Applies a Less Aggressive Approach

Littler on

California is known for having the most aggressive approach among the states regarding restraints on profession, trade, and business. Specifically, California Business and Professions Code section 16600 codifies this...more

Epstein Becker & Green

[Webinar] What’s New for 2020 with Trade Secrets and Restrictive Covenants Law - September 15th, 12:00 pm - 1:00 pm ET

Epstein Becker & Green on

2020 has been an unsettling, unprecedented, and difficult year for most employers. At the same time, courts and legislatures have been directly affected by the ongoing pandemic while responding to the urgent and unusual needs...more

Seyfarth Shaw LLP

6th Circuit Bolsters Employer’s Right to Contract for Chosen Law

Seyfarth Shaw LLP on

As many of our blog readers will know, the enforceability of restrictive covenants often depends on which state’s law applies to the dispute. For example, California is well known for refusing to enforce employee...more

Epstein Becker & Green

Need to Know: Amendment to Louisiana Non-Compete Statute Took Effect on August 1, 2020

Louisiana has long had in its statutes one of the nation’s most distinctive non-compete laws, and that statute has just been amended in a subtle but important way. LA. R.S. 23:921 essentially provides that every agreement...more

Lewitt Hackman

Franchisee 101: Successor Slips Out of Non-Compete

Lewitt Hackman on

A Florida federal court granted a preliminary injunction against a terminated franchisee. The court enjoined the ex-franchisee from using the franchisor’s trademarks and trade dress. The court enforced the franchisor’s...more

Genova Burns LLC

Restrictive Covenants For Insurance Producers: A Primer On Legal Enforceability

Genova Burns LLC on

As States continue to diverge in their interpretation and enforcement of restrictive covenant agreements, it is now more important than ever to ensure those agreements are drafted to conform with jurisdiction-specific laws....more

Bryan Cave Leighton Paisner

Divided Eighth Circuit Panel Finds Unlawful Recruiting of Truck Drivers Case Should Proceed

CRST Expedited, Inc. (CRST), a long-haul trucking company, sued one of its competitors, TransAm Trucking, Inc. (TransAm), for alleged wrongful recruiting and hiring of long-haul truck drivers still under contract with CRST....more

Dorsey & Whitney LLP

Montana Supreme Court Upholds $2.3 Million Judgment Against Former Employees Subject to Restrictive Covenant

Dorsey & Whitney LLP on

Montana is often perceived as unfriendly to restrictive covenants in employment agreements. But in a decision last week, the Montana Supreme Court showed its willingness to enforce those covenants, when they contain...more

Locke Lord LLP

Enforcing Non-Compete Agreements in a Pandemic

Locke Lord LLP on

Since the federal government declared a state of emergency in response to the COVID-19 pandemic, the U.S. Department of Labor has reported over 40 million new claims for unemployment benefits. With some estimates indicating...more

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