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Restrictive Covenants › Enforceability › Employment Litigation

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

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

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

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

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

Lathrop GPM

Eleventh Circuit Affirms in Part, Reverses in Part, District Court Determination to Blue Pencil and Enforce Noncompete Agreement

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The Eleventh Circuit Court of Appeals recently affirmed in part, and vacated in part, a district court’s issuance of an injunction preventing a franchisor’s enforcement of a noncompete covenant as written but allowing...more

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

Georgia Appellate Court Says Employee Nonsolicitation Covenant Not Enforceable Without Express Geographic Limitation

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

In a recent decision, a Georgia appellate panel held that an employee nonsolicitation covenant that limits what parties can do following the end of a business relationship must have an explicit geographic limitation to be...more

Parker Poe Adams & Bernstein LLP

North Carolina Court of Appeals Upholds Use of Noncompete by Distressed Business

Parker Poe Adams & Bernstein LLP on

In order to seek enforcement of a noncompetition agreement in North Carolina, the plaintiff must show that it is protecting a legitimate business interest. What happens when the company seeking to enforce the agreement has...more

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

Louisiana Court Finds Nonsolicitation/Noncompetition Agreement Is Enforceable

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

When Jay Baker, the vice president of Causin, L.L.C., quit to create a competing business, Causin sued to enforce Baker’s nonsolicitation/noncompetition agreement. Baker defended the claim in part by arguing the agreement’s...more

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