Please ensure Javascript is enabled for purposes of website accessibility
Home (page 2)

Tag Archives: Covenant Not to Compete

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 ...

Read More »

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 ...

Read More »

Contract – Franchise – Civil Practice – Preliminary Injunction – Covenant Not to Compete – Return of Materials

Outdoor Lighting Perspectives Franchising, Inc. v. Harders The covenant not to compete in the parties’ expired franchise agreement is written so broadly that it is unenforceable. Nevertheless, the agreement clearly requires the ex-franchisee to return certain materials to the franchisor upon termination of the agreement.

Read More »

Civil Practice – Appeals – Interlocutory – Res Judicata – Texas & Kentucky Lawsuits – Breach of Contract – Covenant Not to Compete

Heritage Operating, L.P. v. N.C. Propane Exchange, LLC Even though plaintiff has filed suit in other states against some of the same individual defendants alleging breach of the same covenant not to compete, each action involves the formation, financing, and operation of a different company that does business solely in the state in which the action was brought. Whether the parties’ non-competition agreements were breached by the formation of each company depends on the factual circumstances in each case. Similarly, whether the non-competition agreements were breached by the financing and/or operation of each company depends on the specific factual circumstances in each case.

Read More »

Contract – Real Property — Commercial Lease – Service Station – Fuel Purchase Agreement – Covenant Not to Compete

BP Products North America Inc. v. Stanley The 4th Circuit reverses summary judgment for defendant service-station operator in plaintiff fuel distributor’s suit to enforce a restrictive covenant that was part of a Purchase Sale Agreement and deed and prohibited the service-station operator from selling non-BP branded products or offering certain automotive services; in a 2-1 split, the panel majority says Virginia courts apply a different test to allow broader restrictions for noncompetes in purchase agreements, but a dissent says Virginia won’t allow “blue-penciling” the contract.

Read More »

Labor & Employment – Contract – Covenant Not to Compete – Civil Practice – Diversity Jurisdiction – Amount in Controversy – Statute of Frauds — Scope

ISCO Industries v. Erdle The plaintiff-employer contends that, in the 36-month time frame of the parties’ covenant not to compete, the defendant-sales manager would normally generate tens of millions of dollars in sales and profits for plaintiff. Since the amount-in-controversy requirement of 28 U.S.C. § 1332(a) is satisfied if either a gain or a cost exceeds $75,000, and since the parties are diverse, this court has jurisdiction over plaintiff’s claim of a breach of the parties’ covenant not to compete. Defendant’s motion to dismiss is denied.

Read More »

Labor & Employment – Covenant Not to Compete – Solicitation – Hiring Former Employees

Inland American Winston Hotels, Inc. v. Crockett Even though defendants - who had covenants not to compete with plaintiff - hired plaintiff's former employees, since the former employees came to defendants of their own accord after they were no longer employed by plaintiff, and since defendants' non-compete agreements only prohibited soliciting plaintiff's employees - not hiring them - defendants did not breach their covenants not to compete.

Read More »