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Covenant Not to Compete

Nov 22, 2016

Labor & Employment – Covenant Not to Compete – Hairstylist – Legitimate Business Interests

Security National Investments, Inc. v. Rice (Lawyers Weekly No. 012-224-16, 18 pp.) (Wanda Bryant, J.) Appealed from Cumberland County Superior Court (Mary Ann Tally, J.) N.C. App. Unpub. Holding: With the removal of a sentence prohibiting the defendant-hairstylist from competing with the plaintiff-spa in doctor offices, chiropractic offices, and fitness centers, a covenant not to […]

Aug 30, 2016

Labor & Employment – Covenant Not to Compete – Asset Sale – Assignment – Pennsylvania Law

TSG Finishing LLC v. Bollinger (Lawyers Weekly No. 020-061-16, 14 pp.) (Michael Robinson, J.) 2016 NCBC 65 Holding: Even though defendant’s employment contract didn’t include an assignment clause and the assets of defendant’s employer were transferred to plaintiff, since the asset transfer left both the employer’s ownership and defendant’s job unchanged, there is at least […]

Mar 18, 2016

Contract – Corporate Asset Sale – Covenant Not to Compete – Overbroad Geographic Restriction – Blue Pencil Doctrine

Beverage Systems of the Carolinas, LLC v. Associated Beverage Repair, LLC (Lawyers Weekly No. 010-012-16, 14 pp.) (Robert Edmunds Jr., J.) Appealed from Iredell County Superior Court (A. Robinson Hassell, J.) On appeal from the Court of Appeals. N.C. S. Ct. Holding: Even though a non-competition agreement permitted a trial court to revise its temporal […]

Jan 19, 2016

Contract – Asset Sale – Covenant Not to Compete – Geographic Scope – Blue Penciling – Propane Gas Sales

Campbell Oil Co. v. AmeriGas Propane, LP (Lawyers Weekly No. 020-007-16, 36 pp.) (Gregory McGuire, J.) 2016 NCBC 5 Holding: In this case involving the sale of a propane gas business, the 100-mile radius in the parties’ non-compete provision is not reasonable. However, the provision allows blue-penciling, so the court amends the territory limitation to […]

Nov 2, 2015

Labor & Employment — Breach of Contract – Restrictive Covenants – Lack of Consideration – Corporate Acquisition

AmeriGas Propane, L.P. v. Coffey (Lawyers Weekly No. 15-15-1000, 24 pp.) (Louis Bledsoe III, J.) 2015 NCBC 93 Holding: Where plaintiffs’ merger with defendant Coffey’s former employer was accomplished through an equity purchase (not through an asset purchase), and where Coffey continued working without interruption after the merger was completed, Coffey’s employment with plaintiffs did [&hel[...]

Sep 22, 2015

Tort/Negligence – Malicious Prosecution & Abuse of Process – Labor & Employment – Covenant Not to Compete

I-Minerals USA, Inc. v. Zielke (Lawyers Weekly No. 15-04-0898, 14 pp.) (Max Cogburn Jr., J.) 1:15-cv-00094; W.D.N.C. Holding: In support of their malicious prosecution claim, plaintiffs allege that defendants in this case read a few sentences in a press release – announcing that defendants’ former employee, whose five-year covenant not to compete term had expired, […]

Aug 27, 2015

Labor & Employment – Contract – Covenant Not to Compete – Geographic Restriction – Unreasonable

Evo Corp. v. Poling (Lawyers Weekly No. 15-15-0833, 14 pp.) (James Gale, C.J.) 2015 NCBC 80 Holding: A covenant not to compete’s geographic restriction is unreasonable because it prohibits defendant from competing with plaintiff within a fifty-mile radius of any of plaintiff’s customers, including customers outside defendant’s field, former customers from the two years before […]

May 13, 2015

Labor & Employment — Covenant Not to Compete – Territory – Medical Practice

Kinston Medical Specialists, P.A. v. Bundle (Lawyers Weekly No. 15-15-0431, 9 pp.) (Gregory McGuire, J.) 2015 NCBC 45 Holding: Although defendant Bundle only worked for plaintiff in Onslow County, and although plaintiff only has locations in Onslow and Lenoir Counties, the parties’ covenant not to compete also covers Duplin, Jones and Greene Counties and parts […]

May 13, 2015

Labor & Employment — Breach of Contract – Covenant Not to Compete & Non-Solicitation Agreement – Assignment – Scope

Investors Trust Co. v. Whitlock (Lawyers Weekly No. 15-15-0429, 14 pp.) (James Gale, C.J.) 2015 NCBC 43 Holding: Even though defendant’s covenant not to compete said the covenant could be assigned if defendant were given written notice, this was not necessarily the only way in which the covenant could be assigned to plaintiff – the […]

Apr 1, 2015

Labor & Employment – Wage & Hour Act – Tort/Negligence – Interference with Contract – Covenant Not to Compete

Moonracer, Inc. v. Collard (Lawyers Weekly No. 15-02-0285, 14 pp.) (Terrence Boyle, J.) 5:13-cv-00455; E.D.N.C. Holding: When defendant Collard was employed by plaintiff, he signed notices that, if his employment were terminated, he would forfeit unused vacation and commissions that were not yet payable as of his termination date. Although Collard submitted an affidavit saying […]

Feb 16, 2015

Civil Practice — Claim Splitting – Labor & Employment – Non-Compete & Non-Solicitation Clauses – Attorney’s Statements

Superior Performers, Inc. v. Family First Life, LLC (Lawyers Weekly No. 15-03-0146, 10 pp.) (James Beaty, J.) 1:14-cv-00382; M.D.N.C. Holding: The claim-splitting doctrine requires dismissal of this action in which plaintiff alleges a violation of its former employees’ covenants not to compete. Plaintiff could have raised this claim in two other lawsuits against the same […]

Jan 20, 2015

Labor & Employment — Contract – Covenant Not to Compete – Territory – Town & County – Blue Penciling – Preliminary Injunction

Premier Resources of North Carolina, Inc. v. Kelly (Lawyers Weekly No. 15-16-0059, 16 pp.) (Lisa Bell, J.) Appealed from Mecklenburg County Superior Court (Eric Levinson, J.) N.C. App. Unpub. Holding: Where plaintiff’s owner admitted that the non-compete covenant’s Davidson County restriction was intended to be written as the Town of Davidson, the trial court did […]

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