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Non-Compete Agreements › Breach of Contract › Appeals

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 -
Foley & Lardner LLP

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

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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

Morgan Lewis

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

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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

Holland & Knight LLP

Supreme Judicial Court Clarifies Scope of Massachusetts Noncompetition Agreement Act

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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

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

Blake, Cassels & Graydon LLP

Colombie-Britannique : la Cour d’appel confirme un jugement sommaire rejetant une demande d’action collective

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Le 13 février 2025, la Cour d’appel de la Colombie-Britannique (la « CACB ») a rejeté une demande d’autorisation d’interjeter appel du jugement sommaire rendu dans l’affaire Latifi v. The TDL Group Corp., confirmant que des...more

Epstein Becker & Green

Massachusetts High Court To Weigh In on Forfeiture-for-Solicitation Provisions in Era of Massachusetts Noncompetition Agreement...

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On Monday, March 3, 2025, the Massachusetts Supreme Judicial Court (“SJC”) heard argument in Miele v. Foundation Medicine, Inc., regarding whether the Massachusetts Noncompetition Agreement Act, G. L. c. 149, § 24L (the...more

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

Seventh Circuit Rules Forfeiture-for-Competition Clauses Under Delaware Law Enforceable and Not Subject to Reasonableness Review

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In 2021, LKQ Corporation (LKQ) filed suit against Robert Rutledge, its former plant manager, in the U.S. District Court for the Northern District of Illinois. LKQ alleged that Rutledge’s working for a competitor within nine...more

Kohrman Jackson & Krantz LLP

Court Ruling in Ohio Highlights Evolving Non-Compete and Non-Solicit Landscape

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As the Federal Trade Commission’s Non-Compete Rule is appealed through the federal courts, a ruling from a court in Cleveland, Ohio, exemplifies how certain courts have recently approached non-compete and non-solicitation...more

WilmerHale

Beating the Odds: First Circuit Doubles Down on Massachusetts Decision Enforcing Noncompete Against Sports Betting Executive Newly...

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Against a growing trend of legislation and broader efforts seeking to limit or eliminate post-employment noncompetition restrictions, recent Massachusetts and First Circuit decisions in a dispute between DraftKings and one of...more

Seward & Kissel LLP

Employment Litigation Roundup: November 2023

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Ex-employee’s golf outing with customer does not violate non-solicit - An auto parts manufacturer in Michigan sought a preliminary injunction against a former sales employee for violating his restrictive covenants,...more

McDermott Will & Emery

Preliminary Injunction, Meet Irreparable Harm

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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

McDermott Will & Emery

Stryking Noncompete Preliminary Injunction

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The US Court of Appeals for the Sixth Circuit upheld a district court’s grant of a preliminary injunction restricting a former employee from working for conflicting organizations or communicating with a competitor’s counsel....more

Rumberger | Kirk

Florida Still Strongly Favors Employer’s Non-Compete Agreements 

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Non-compete and confidentiality clauses have long been a fixture in employment agreements in Florida. However, there has been some dissention as to whether such restrictive covenants continue to apply where an employment...more

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

Wyoming Supreme Court Eliminates the Blue Pencil Rule for Noncompete Agreements

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

On February 25, 2022, the Wyoming Supreme Court issued a decision prohibiting courts from revising, or “blue penciling,” noncompete agreements to be reasonable and enforceable under the law. The decision overrules the Wyoming...more

Stokes Wagner

What Are The Limits Of A Court’s Ability To Enforce A Non-Compete Agreement?

Stokes Wagner on

The parties in the case of Daneshgari v. Patriot Towing Services, LLC, No. A21A0887 (Ga.App. Oct. 21, 2021), had entered into a four-year non-compete agreement in June of 2016 that Daneshgari and his partner began to violate...more

FordHarrison

Non-Compete News: – Georgia Court Interprets Non-Compete Statute's "Sale-of-a-Business" Provision

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Georgia’s Restrictive Covenants Act (O.C.G.A. § 13-8-50 et seq.) (“RCA”) governs Georgia non-compete agreements entered into after May 2011. Very few courts have interpreted the RCA since its inception. In Bearoff v. Craton,...more

Dorsey & Whitney LLP

Colorado Courts Further Restrict Use of Restrictive Covenants

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Refusing to enforce a non-solicitation provision that violated public policy, the Colorado Court of Appeals held that parties to a non-solicitation agreement cannot contractually obligate the court to “blue pencil” the...more

McDermott Will & Emery

Turbulence on Breach of Employment Agreement, Trade Secret Misappropriation

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Addressing a bench trial decision concerning a former employee’s retention of confidential information and violation of a non-compete provision, the US Court of Appeals for the Fourth Circuit found no abandonment of the...more

Knobbe Martens

Princeton Digital Image Corp. v. Office Depot Inc. Et Al.

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Federal Circuit Summary - Before Dyk, Taranto, and Stoll. Appeal from U.S. District Court for the District of Delaware. Summary: The Federal Circuit lacks jurisdiction to hear an appeal from a district court judgment...more

Fisher Phillips

Contractual Employee Non-solicitation Provisions Under Attack: Employer Loses Battle in Case Involving Unique Facts

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California’s prohibition against contracts that restrain a person’s ability to engage in a lawful business, profession, or trade is well-established and well-known. Ten years ago, in Edwards v. Arthur Andersen LLP (2008) 44...more

FordHarrison

Non-Compete News: Is a Non-Solicitation of Employees Provision Enforceable in California?

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Last month, California’s Fourth District Court of Appeal issued AMN Healthcare, Inc. v. Aya Healthcare Servs., Inc., 28 Cal. App. 5th 923 (Cal. Ct. App. 2018), a decision calling into question the validity of non-solicitation...more

Burr & Forman

SC body bag noncompete case exhumed, revisited

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Two years ago, we wrote about a noncompete decision in which a special referee found a business seller had breached a sales agreement by violating both a noncompete covenant and an exclusive sales provision contained in the...more

Burr & Forman

Non-Competes in the Employment Context Revisited

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In 2016 we wrote about a non-compete decision where special referee found that a seller of a business had breached a sales agreement by violating both a non-compete covenant and an exclusive sales provision contained in the...more

Butler Snow LLP

Tennessee Court of Appeals Tackles Issues Surrounding Preparation to Compete

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I’ve previously written about the circumstances in which taking preparatory measures to compete crosses the line so as to become unlawful. A couple of recent Tennessee Court of Appeals decisions provide more insight....more

Brownstein Hyatt Farber Schreck

Colorado Court of Appeals Issues Needed Guidance on Physician Non-Compete Agreements

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The inclusion of a non-compete agreement, or covenant not to compete, is frequently one of the most anxiety-producing issues in physician employment contracting on the part of both the physician and the employer. This has...more

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