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Restrictive Covenants Tortious Interference

Nilan Johnson Lewis PA

Post-Hire Advice-of-Counsel—Why the Justification Defense Can Be Used in Ongoing Restrictive Covenant Litigation

Nilan Johnson Lewis PA on

Hiring an applicant who has a non-compete or non-solicit agreement with a prior employer creates risk for the both the individual and the new employer. The prior employer can sue both the applicant for violating the contract...more

Holland & Knight LLP

Providers Negotiating with Doctors Who Have Restrictive Covenants Beware

Holland & Knight LLP on

Providers negotiating with doctors and other medical professionals who are bound by enforceable restrictive covenants is tricky business. By virtue of his/her/their position, these physicians may owe fiduciary duties to the...more

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

Claim Employer Exaggerated Scope of Noncompete Survives Motion to Dismiss in Illinois Federal Court

In a recent decision, a federal trial court in Illinois allowed an employee’s tortious interference claim to continue against his former employer alleging it had exaggerated the reach of a noncompete agreement that he had...more

Sheppard Mullin Richter & Hampton LLP

Void vs. Voidable: The Distinction That Can Make or Break a Tortious Interference Claim in Light of the Great Resignation

Over the past two years, employee mobility seems to be at an all-time high. In fact, the labor market is so fluid that pundits and experts often refer to it as the “Great Resignation.” Although employee mobility can be a...more

Jackson Lewis P.C.

$7.5 Million Jury Verdict for Employer in Unfair Competition and Restrictive Covenant Case

Jackson Lewis P.C. on

At the end of a complicated case, an employer obtained a nearly $7.5 million jury verdict in enforcement of restrictive covenant agreements and as a result of the unfair competition and breaches of the duty of loyalty of a...more

Seyfarth Shaw LLP

California Court of Appeal Affirms Injunction Barring Netflix From Poaching Fox Executives, Citing Unfair Competition

Seyfarth Shaw LLP on

In what may seem to be a surprising series of events, given the state’s infamous hostility to restrictive covenants, a California appellate panel recently affirmed a Los Angeles Superior Court judgment effectively enjoining...more

Skadden, Arps, Slate, Meagher & Flom LLP

Which Affiliates Are Bound by Restrictive Covenants Hinges on the Language the Parties Chose, Recent Rulings Stress

In 2021, the Delaware Court of Chancery issued two decisions addressing when a contractual party’s affiliates are bound to restrictive covenants in an agreement. In the first case, Sixth Street Partners Management Company,...more

Faegre Drinker Biddle & Reath LLP

Ixchel Pharma, LLC v. Biogen, Inc.: Opening the Door to Non-Compete Agreements Between Businesses in California

In a recent decision, Ixchel Pharma, LLC v. Biogen, Inc., the Supreme Court of California opened the door for some restrictive covenants between commercial enterprises, but it left alone California law generally prohibiting...more

Proskauer - California Employment Law

Tortious Interference With At-Will Contract Requires Independently Wrongful Act

Ixchel Pharma, LLC v. Biogen, Inc., 9 Cal. 5th 1130 (2020) - In this commercial dispute between two companies, the California Supreme Court determined the bounds of a claim for tortious interference of an at-will contract...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

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

Lathrop GPM

The Franchise Memorandum - Issue #253

Lathrop GPM on

Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Below are summaries of recent legal developments of interest to franchisors. Given the widespread and evolving impact of the COVID-19...more

Wilson Sonsini Goodrich & Rosati

Recent Cases Shed Light on the Status of Employee Non-Solicitation Agreements in California

Two recent cases have found that employee non-solicitation agreements, at least in the form many companies currently use, are unlawful in California. In AMN Healthcare, Inc. v. Aya Healthcare Services, Inc., 28 Cal. App. 5th...more

Parker Poe Adams & Bernstein LLP

California Nixes Employee Non-Solicitation Restrictions

Employers with California operations probably know that traditional noncompetition covenants are unenforceable in that state. Additional state court decisions concluded that customer non-solicitation prohibitions are also...more

Foley & Lardner LLP

Non-Compete: Who is the Bad Actor?

Foley & Lardner LLP on

Against the backdrop of a continuing trend of low rates of unemployment throughout the United States, there has been a recent surge of people searching for new and better jobs. As a result, there has also been increased...more

Seyfarth Shaw LLP

Federal Court Rules Against Calzone Franchisor In Meaty Lawsuit Against Former Franchisee

Seyfarth Shaw LLP on

In a meaty decision involving the intersection of restrictive covenant and franchise law, the United States District Court for the Southern District of Ohio recently denied a request by D.P. Dough Franchising, LLC (“D.P....more

FordHarrison

Non-Compete News – Third Circuit Says Tortious Interference with a Non-Compete Requires Actual Knowledge of the Agreement at Issue

FordHarrison on

An employer hiring an individual known to be subject to a non-compete contract can expect to be accused of tortiously interfering with that contract. On the other hand, the hiring employer should be innocent of wrongdoing if...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

Mintz - Employment, Labor & Benefits...

California Sunshine Warms the Market: A Twist on Customer Non-Solicitation Provisions in the Golden State

Those of you reading our Employee Mobility blog posts are familiar with California’s unique approach to non-compete agreements: they are, except in a few limited circumstances, unenforceable in the Golden State. And that...more

Orrick - Trade Secrets Group

Running Interference: S.D.N.Y. Lays Out Standards for Tortious Interference in Dispute Between Watchmaker and Former Employees

The U.S. District Court for the Southern District of New York recently cleared the way for a Michigan watchmaker to pursue claims for trade secret misappropriation, among other things, against two former employees who left to...more

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

Watch Your Assets Part Three: Why and When to Seek Injunctions and Temporary Restraining Orders

In our last two posts, we identified best practices for ensuring that a company’s house is in order, including the use of narrowly tailored restrictive covenant agreements (Part I) and adopting a company culture and behaviors...more

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