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Non-Solicitation Agreements Breach of Contract

Mintz - Employment Viewpoints

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

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

Shook, Hardy & Bacon L.L.P.

Massachusetts High Court Rules for Employer in Nonsolicitation Challenge

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

BCLP

Hong Kong High Court Grants Injunction to Enforce Restrictive Covenants

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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

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

Patterson Belknap Webb & Tyler LLP

Second Circuit Holds No Irreparable Harm from Hospital’s Poach of Care Providers, Despite Non-Solicitation Clause

Last month, the Second Circuit rejected the effort of an association of anesthesiology service providers to enjoin a Syracuse-based hospital from recruiting and hiring local anesthesiology providers. The association, American...more

Fox Rothschild LLP

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

Fox Rothschild LLP on

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

Kohrman Jackson & Krantz LLP

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

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

Seward & Kissel LLP

Employment Litigation Roundup: April 2024

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Employer sues former traders for using an allegedly confidential trading strategy but loses bid for emergency injunctive relief. On April 12, Jane Street Group LLC (“Jane Street”) sued two of its former traders and...more

McDermott Will & Emery

Fifth Circuit Rejects Recruiter’s Trade Secret Misappropriation and Contract Defenses

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The US Court of Appeals for the Fifth Circuit affirmed a district court’s decision finding trade secret misappropriation and breach of contract based on a recruiter’s improper use of confidential client information. Counsel...more

Lewitt Hackman

Franchisor 101: Getting Away With Tax (Franchisor) Evasion

Lewitt Hackman on

A Pennsylvania federal court refused to enforce non-competition and non-solicitation covenants in a franchise agreement of a nationwide tax preparation service franchisor. The court dismissed the franchisor’s request for...more

Seward & Kissel LLP

Employment Litigation Roundup: November 2023

Seward & Kissel LLP on

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

Holland & Knight LLP

A Cautionary Tale from arrivia Inc. v. Rowley

Holland & Knight LLP on

Enforceability of releases for unknown claims at the time of settlement is a well-established legal principle, as highlighted in the recent case, arrivia Inc. v. Rowley, No. CV-23-01039-PHX-DLR, 2023 WL 7386384 (D. Ariz. Nov....more

Lathrop GPM

Pennsylvania Federal Court Rules It Has Subject Matter Jurisdiction to Decide Trade Secret Claim but Dismisses as Untimely...

Lathrop GPM on

A federal court in Pennsylvania granted in part and denied in part a former franchisee’s motion to dismiss a franchisor’s allegation that she misappropriated trade secrets and breached the franchise agreement. JTH Tax, LLC v....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

Foley & Lardner LLP

Protecting Trade Secrets In States That Disfavor Noncompetes

Foley & Lardner LLP on

Federal and state laws are becoming increasingly unfriendly to employers' efforts to impose post-employment restrictions on workers via nonsolicit and noncompete agreements. However, even in states that have historically...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

Proskauer - California Employment Law

California Court of Appeal Publishes Opinion Upholding Customer Non-Solicitation Covenant

Despite California’s general hostility towards post-termination restrictive covenants, the California Court of Appeal, in a recently published opinion, Blue Mountain Enters., LLC v. Owen, 74 Cal.App.5th 537 (1st Dist. Jan....more

Morris James LLP

Chancery Rules That The Standard Of Proof For Contempt Motions Is The Preponderance Of The Evidence, Not Clear And Convincing...

Morris James LLP on

inTEAM Associates, LLC v. Heartland Payment Systems, LLC, C.A. No. 11523-VCF (Del. Ch. Oct. 29, 2021) - Court of Chancery Rule 70(b) empowers the Court to hold a party in contempt for, among other things, failing to obey...more

Lewitt Hackman

Franchisor 101: Competing With a Non-Compete Covenant?

Lewitt Hackman on

A federal court in Louisiana granted a preliminary injunction against a former franchisee of Liberty Tax Service for breaching post-termination covenants under a franchise agreement. Liberty Tax entered into franchise...more

Winstead PC

Keeping Eyes Wide Open When New Members Join the Pack: A Cautious Approach to the Addition of New Business Partners

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There are many reasons for business owners to consider adding new partners, including to secure additional capital, to add needed expertise to help grow the company, to bring family members or close friends to join in...more

Farrell Fritz, P.C.

Restrictive Covenants: The Importance of Understanding Their Contractual Limits

Farrell Fritz, P.C. on

If supermodel Tyra Banks has taught us anything about the modeling industry, it’s that the competition is fierce. Unfortunately, one Manhattan-based modeling agency and former agent aren’t learning this lesson on the...more

Bass, Berry & Sims PLC

Chris Lazarini Provides Insight on the Four Factors to Consider when Temporary Injunctive Relief is Requested

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Bass, Berry & Sims attorney Chris Lazarini provided insight on a case involving a plaintiff’s request for a temporary restraining order (TRO) against former employees who allegedly stole confidential client contact...more

Ward and Smith, P.A.

Reminder to North Carolina Employers: Take Time to Thoughtfully Craft Your Restrictive Covenants!

Ward and Smith, P.A. on

A recent decision of the North Carolina Court of Appeals serves as an important reminder to avoid the temptation to overreach when seeking to protect your customer relationships. Restrictive covenants prohibiting...more

Morris James LLP

Chancery Finds Prospective Purchaser May Pursue Breach Claims Against Target Despite Termination Fee Payment

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Genuine Parts Company v. Essendant Inc., C.A. No. 2018-0730-JRS (Del. Ch. Sept. 9, 2019). Termination fee provisions are commonplace buy-side protection in M&A transactions intended to recoup a failed prospective...more

A&O Shearman

Delaware Court Of Chancery Denies Motion To Dismiss Merger Agreement Breach Claims Even Though Defendant Paid The Contractual...

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On September 9, 2019, Vice Chancellor Joseph R. Slights III of the Delaware Court of Chancery denied Essendant Inc.’s motion to dismiss an action for breach of a merger agreement brought by Genuine Parts Company...more

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