News & Analysis as of

Irreparable Harm Non-Compete Agreements

Lathrop GPM

Missouri Federal Court Grants Franchisor’s Motion for Preliminary Injunction for Alleged Violation of Noncompete

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A federal court in Missouri recently granted a franchisor’s motion for a preliminary injunction, finding that the franchisee’s operation of a competing business demonstrated irreparable harm. Three Dog Bakery, LLC v. Crit,...more

Lewitt Hackman

Franchisee 101: Dog Days of Operations

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A federal court in Missouri granted franchisor’s motion for preliminary injunction against its former franchisee, enjoining the former franchisee from operating a competing business from the former franchised location....more

Lewitt Hackman

Franchisee 101: Muscling Through the Competition

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A Minnesota district court issued a preliminary injunction against a former franchisee who engaged in a competing business during the franchise relationship. Snap Fitness, Inc., a gym franchisor, entered into a franchise...more

Lewitt Hackman

Franchisee 101: Kicking Injunctions to the Curb

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A Kansas district court denied a franchisor’s motion for preliminary injunction against its former franchisee who engaged in competing businesses immediately after terminating the franchise relationship....more

BakerHostetler

The Second Decision Is In: PA Court Finds FTC Noncompete Rule Enforceable, Creating Conflicting Decisions and Uncertainty

BakerHostetler on

On July 23, 2024, the United States District Court for the Eastern District of Pennsylvania issued a decision in ATS Tree Services, LLC v. FTC, which held that the Federal Trade Commission (FTC) had the authority to issue its...more

Constangy, Brooks, Smith & Prophete, LLP

Judge temporarily blocks FTC noncompete ban on limited basis

A federal judge in Texas has issued a preliminary injunction against a Final Rule issued by the Federal Trade Commission that would ban virtually all noncompetition agreements between employers and employees. The judge...more

Lewitt Hackman

Franchisee 101: Braking The Competing Business

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A Massachusetts federal district court enforced a non-compete provision in a franchise agreement to enjoin former franchisees from operating a different branded automotive business at the same location as the former...more

Lathrop GPM

Arizona Federal Court Grants Temporary Restraining Order and Preliminary Injunction Against Former Franchisee for Violation of...

Lathrop GPM on

A federal court in Arizona recently granted franchisor LeTip World Franchise’s motion to temporarily restrain and preliminarily enjoin a former franchisee from operating a competing business. LeTip World Franchise, LLC v....more

Lewitt Hackman

Franchisee 101: An UnBakeable Non-Compete

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A Minnesota federal court denied cookie dough franchisor Cookie Dough Bliss Franchising’s motion for a temporary restraining order and preliminary injunction against a former Minnesota franchisee and its owners....more

Lewitt Hackman

Franchisee 101: Court Taxes Franchisor’s Restrictive Covenants

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The Second Circuit Court of Appeals affirmed a district court’s order denying a franchisor’s request for preliminary injunction against a terminated franchisee to enforce covenants not to compete or solicit former clients....more

Lewitt Hackman

Franchisor 101: Court Hits Brakes on Former Franchisees

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An Ohio appellate court upheld the state trial court’s decision to grant a permanent injunction against two former franchisees of an auto body shop franchise working for a competitor in violation of the franchise agreement’s...more

McDermott Will & Emery

Preliminary Injunction, Meet Irreparable Harm

McDermott Will & Emery on

The US Court of Appeals for the Fifth Circuit, in a case where an ex-employer sought preliminary injunctive relief based on an alleged breach of non-disclosure and non-compete agreements and alleged misappropriation of...more

Lewitt Hackman

Franchisor 101: No Repairing Delayed Filing

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A New Jersey federal court denied a franchisor’s motion for preliminary injunction against a franchisee due to franchisor’s 11 month delay in bringing the motion. Franchisee entered into two franchise agreements with H-1 Auto...more

Lewitt Hackman

Franchisee 101: The Small Business on Main Street

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A federal district court denied a motion for preliminary injunction brought by pizza franchisor, Breadeaux’s Pisa, LLC, seeking to stop a former franchisee from operating a competing pizza business. The franchise agreement...more

Lewitt Hackman

Franchisee 101: No Shaking Franchisor’s TRO

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An Indiana federal court granted hamburger and milkshake franchisor, Steak n Shake, a temporary restraining order (“TRO”) against a franchisee to enforce post-termination obligations under franchise and area development...more

Lewitt Hackman

FRANCHISOR 101: Not at Liberty to Compete

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A federal district court in Michigan granted a preliminary injunction in favor of tax preparation franchisor, Liberty Tax Service (JTH Tax, Inc. v. Magnotte, E.D. Mich., ¶16,575), finding it was likely to succeed on its...more

Dorsey & Whitney LLP

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

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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

Dorsey & Whitney LLP

Words on the Page: How Important are Irreparable Injury Provisions in Non-Compete Agreements?

Dorsey & Whitney LLP on

Employers who use non-compete agreements take note: Minnesota courts want to see more than just words in a contract before they will grant injunctive relief against a former employee. This week, the Supreme Court of...more

Sheppard Mullin Richter & Hampton LLP

Utah and Idaho Limit Non-Competes and Vermont and Pennsylvania Work to Ban Them

Several states have recently enacted modifications to their respective non-compete laws or have legislation in the pipeline. Most continue the trend of limiting enforceability of non-competes, which are agreements between an...more

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

Indiana Court of Appeals Rules on Irreparable Harm, Laches, Extension Clauses, and More in Recent Restrictive Covenant Case

The Indiana Court of Appeals recently issued a restrictive covenant ruling addressing several significant issues. On November 30, 2016, in Hannum Wagle & Cline Engineering, Inc. v. American Consulting, Inc., the Indiana Court...more

Seyfarth Shaw LLP

Non-Compete That Grants An Employer The Right To Seek Injunctive Relief No Guarantee That Injunction Will Issue

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A trial court declined to enter a preliminary injunction in a non-compete covenant case despite a provision in the covenant giving the employer the “right to seek injunctive relief in addition to any other remedy available to...more

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