News & Analysis as of

Non-Compete Agreements › Breach of Contract

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... more +
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 -
Amundsen Davis LLC

Employee Non-Competes: Where We Stand Today

Amundsen Davis LLC on

A little less than a year ago, businesses were scrambling to get ready for the then-impending Federal Trade Commission’s (FTC) final rule that would have blocked nearly all non-compete agreements between employers and...more

Epstein Becker & Green

Florida Passes Employer-Friendly Restrictive Covenant Legislation

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In May of this year, we reported that Florida was on the cusp of enacting employer-friendly restrictive covenant legislation. Earlier this month, Florida passed that bill, enacting the “Florida Contracts Honoring...more

Jenner & Block

Delaware Court Refuses to Enforce or Modify Overbroad Noncompete in Cleveland Integrity Services v. Byers

Jenner & Block on

In Cleveland Integrity Services, LLC v. Byers (Del. Ch. Feb. 28, 2025), the Delaware Court of Chancery declined to enforce a two-year non-compete agreement that it found to be geographically overbroad and refused to narrow or...more

Foley & Lardner LLP

Delaware Court Confronts Issue of First Impression: When a Company Attempts to Enforce a Noncompete Seeking Only Damages, Does the...

Foley & Lardner LLP on

In Fortiline, Inc. v. McCall, the plaintiffs sought to enforce a noncompetition agreement against its former employees through a preliminary injunction. The court denied the injunction, holding the noncompetition agreements...more

Lathrop GPM

South Carolina Federal Court Vacates Partial Summary Judgment Citing Abusive Litigation

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A federal court in South Carolina recently sua sponte vacated its own grant of partial summary judgment due to the abusive nature of the ongoing litigation. YGM Franchise, LLC v. Wong, 2025 WL 1549606 (D.S.C. May 30, 2025)....more

Lathrop GPM

Missouri Federal Court Denies Franchisor’s Request for Temporary Restraining Order for Alleged Violation of Noncompete

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A federal court in Missouri recently denied franchisor Three Dog Bakery, LLC’s request for a temporary restraining order (TRO) against its former franchisee, J.L.E.T. Enterprises SWF, LLC, and its owners, Joseph and Lynette...more

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

ArentFox Schiff

Massachusetts Supreme Judicial Court Ruling: Noncompetition Agreement Act Does Not Apply to Forfeiture Clauses

ArentFox Schiff on

The Massachusetts Supreme Judicial Court (SJC) recently clarified the scope of the Massachusetts Noncompetition Agreement Act (MNAA). In Susan Miele v. Foundation Medicine, Inc., the SJC held the MNAA does not apply where a...more

Falcon Rappaport & Berkman LLP

Delaware Chancery Court Narrows the Path for Enforceable Non-Competes: Lessons from North American Fire and Payscale

Falcon Rappaport & Berkman LLP on

A notable trend has emerged in Delaware with respect to the enforceability of non-competes – while once considered a management-friendly jurisdiction, two recent decisions demonstrate a marked shift towards a closer scrutiny...more

Foley & Lardner LLP

A Shot of Reality: Court Denies Dealer’s Request for Preliminary Injunction to Stop Termination of Dealership Agreement

Foley & Lardner LLP on

A federal court recently denied a dealer’s request for preliminary injunction to halt the termination of a dealership agreement with a manufacturer of liquor control systems. The dealer’s acts and omissions during the...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

Mintz - Employment Viewpoints

Top Massachusetts Court Clarifies That Non-Solicitation Covenants Fall Outside the State’s Non-Compete Law

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In a closely watched decision, the Massachusetts Supreme Judicial Court in Miele v. Foundation Medicine, Inc. clarified that the Massachusetts Noncompetition Agreement Act (MNAA) (G.L. c. 149, § 24L) does not apply to...more

Morgan Lewis

Massachusetts High Court Clarifies Noncompete Law’s Scope, Declines to Let Nonsolicits ‘Through the Back Door’

Morgan Lewis on

In Miele v. Foundation Medicine, Inc., the Massachusetts Supreme Judicial Court (SJC) clarified that the Massachusetts Noncompetition Agreement Act (MNAA or the Act) does not apply to a forfeiture clause triggered by a breach...more

Shook, Hardy & Bacon L.L.P.

Massachusetts High Court Rules for Employer in Nonsolicitation Challenge

Shook, Hardy & Bacon L.L.P. on

Although the Massachusetts Noncompetition Agreement Act expressly excludes nonsolicitation agreements from its definition of “noncompetition agreements,” the Massachusetts Supreme Judicial Court (SJC) recently responded to a...more

Holland & Knight LLP

Supreme Judicial Court Clarifies Scope of Massachusetts Noncompetition Agreement Act

Holland & Knight LLP on

The Massachusetts Supreme Judicial Court (SJC) has ruled that a forfeiture clause triggered by a breach of a non-solicitation agreement is not a "forfeiture for competition agreement" under the Massachusetts Noncompetition...more

BCLP

Hong Kong High Court Grants Injunction to Enforce Restrictive Covenants

BCLP on

In two separate decisions in April 2025, the Hong Kong High Court first refused, but then allowed, an IT company’s application for an interlocutory injunction to enforce post-termination restrictive covenants against its...more

Freeman Law

Is it Really Over? Contract Provisions that Survive Termination and Why.

Freeman Law on

Just like many relationships, not all parts of a contract become things of the past when they expire or terminate. One way to ensure that a contractual right or duty applies post-termination is to specify that will it...more

Farrell Fritz, P.C.

The Forfeited Equity Trap: Why Your Non-Compete Might Be Worthless

Farrell Fritz, P.C. on

Imagine you’re a private equity firm. You buy a company, and you want to retain and incentivize key employees, so you give them some equity in the form of incentive units.  You also want to prevent them from running off and...more

Troutman Pepper Locke

Restrictive Covenants Unenforceable Where Consideration Forfeited

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In North American Fire Ultimate Holdings, LP v. Alan Doorly, the Delaware Court of Chancery held that the restrictive covenants included in an incentive unit grant agreement were unenforceable when the units received by the...more

Morgan Lewis - Tech & Sourcing

Radius Clauses in Music Performance Contracts

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As the summer 2025 concert season continues to ramp up, we want to take the opportunity to explain why your favorite band or artist might only be performing once in your region this summer: a radius clause....more

Lathrop GPM

Massachusetts Federal Court Grants Preliminary Injunction for Noncompete Violations, Denies Injunction for Trademark Infringement

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A federal court in Massachusetts recently granted, in part, a Motion for Preliminary Injunction as to enforcement of franchise agreement noncompete covenants but denied the motion as to claims of trademark infringement,...more

Lewitt Hackman

Franchisee 101: When the Competition Leaks

Lewitt Hackman on

A Massachusetts federal court granted a franchisor’s request to enforce the franchise agreement’s post-termination non-compete provision against a terminated franchisee....more

Fox Rothschild LLP

Two business court rulings offer insights on trade secret pleadings, employment agreements, and credibility

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Maven Advantage, Inc. and Square One Storm Restoration, LLC are competing roofing businesses. Maven alleged that two employees (Couch and Daniels) stole Maven’s trade secrets (customer lists) and then quit to work for Square...more

Jenner & Block

Delaware Supreme Court Reaffirms Reluctance to Blue-Pencil Overbroad Restrictive Covenants in Sunder v. Jackson

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The Delaware Supreme Court’s decision in Sunder Energy, LLV v. Jackson, No. 455, 2023, 2024 Del. LEXIS 407 (December 10, 2024) reaffirmed the courts’ limited willingness to modify or “blue-pencil” overbroad restrictive...more

Proskauer - Trade Secrets

Georgia Federal Court Denies TRO and Motion to Dismiss in Trade Secrets Case

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On March 27, 2025, in Stimlabs LLC v. Griffiths, the U.S. District Court for the Northern District of Georgia ordered a former executive, Sarah Griffiths, to face claims related to her alleged theft of Stimlab’s trade secrets...more

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