A federal district court in the Northern District of California recently found that a non-signatory to an arbitration agreement may enforce that agreement against a signatory and compel arbitration under the doctrine of equitable estoppel. Semin, a software developer, worked for Torbit, Inc. He signed an employment agreement containing a proprietary information non-disclosure provision, and a commitment… Continue Reading
The fifth webinar of the 2012 series will focus on non-compete and trade secret considerations from an international perspective. The webinar will provide a high level discussion of recent non-compete and trade secret issues that impact foreign companies conducting business in the United States. This program will provide an overview of the key considerations that… Continue Reading
By Dan Hart As we have written on this blog before, on May 11, 2011 Georgia reissued its new Restrictive Covenant Act (“New Act”) in order to resolve concerns about the constitutionality and effectiveness of a nearly identical statute that the state’s legislature had previously enacted in 2009. The 2009 version of the statute was contingent on… Continue Reading
A recent Iowa U.S. district court decision upheld two-year, geographically reasonable, non-compete agreements signed by 26 veterinarians while they were employed by Iowa Veterinary Specialties, P.C. (IVS), a Des Moines, Iowa clinic they owned. When two of the vets and IVS’s operations manager learned that its sale to ISU Veterinary Services Corporation (VSC) was imminent, they… Continue Reading
Illinois House of Representatives Reintroduces Non-Compete bill for consideration.
On November 2, Georgians voted overwhelmingly in favor of updating Georgia’s restrictive covenant law. The new law is codified at O.C.G.A. 13-8-50 et seq. The law is not retroactive, so it does not affect existing contracts. However, for many businesses who have learned that their agreements are not enforceable under Georgia law as it existed… Continue Reading
By Kate Perrelli and Erik Weibust On October 7, 2009, the Massachusetts Legislature’s Joint Committee on Labor and Workforce Development held a hearing on a non-compete bill, House No. 1799, sponsored by Representatives Will Brownsberger and Lori Ehrlich. Representatives Brownsberger and Ehrlich had each previously sponsored their own independent bills – Brownsberger’s based on California’s statute… Continue Reading
In a landmark decision just issued, the Illinois Appellate Court, Fourth District, ruled that an ex-employer seeking to enforce a covenant-not-to-compete against former sales personnel need only show that the time-and-territory restrictions are reasonable and need not prove, in addition, that there is a sufficient legitimate-business-interest in enforcement. In Sunbelt Rentals, Inc. v. Ehlers, No…. Continue Reading
I recently ran across this newsletter article regarding taxation of non-compete clauses in the sale of closely held businesses and thought it worth passing along for those who find themselves negotiating non-compete agreements in the context of the sale of a closely held business.
In the back and forth battle between companies and former employees regarding the confidential nature of customer information, the United States District Court for the District of Nebraska has just issued a decision of note in Softchoice Corp. v. MacKenzie, 08-cv-00249. By the decision, the Court dismissed the action as against the defendant, finding that despite… Continue Reading
Emigra Group, LLC v. Fragomen, Del Rey, Bernsen & Loewy LLP, et al., No. 07 Civ. 10688 (LAK) (S.D.N.Y. Mar. 31, 2009). In a decision that should be considerable reassurance to employers in general and law firms in particular, a district judge in New York has rejected an antitrust claim brought by a consulting firm… Continue Reading
April 02, 2009 Daily Journal Reprinted and/or posted with the permission of Daily Journal Corp. (2009). By Robert Milligan and Nicholas Waddles The California Supreme Court’s decision in Edwards v. Arthur Andersen LLP, 44 Cal.4th 937 (2008), reaffirmed that employee non-competition agreements are void in California unless they fall within narrow exceptions to Business and… Continue Reading
As discussed in our March 9th and 17th postings, Illinois Senate Bill SB 2149 seeks to dramatically alter the landscape of trade secret enforcement and litigation in Illinois by, among other things, (a) requiring disclosure of trade secrets before a party issues written or oral discovery; (b) awarding attorneys’ fees to the prevailing party in… Continue Reading
EqualLogic, Inc. v. Shea, (N.H. Superior Court, Hillsborough County). In an unusual reversal, a Nashua, New Hampshire judge admitted recently that she had erred in granting a preliminary injunction barring a former executive for computer data storage company EqualLogic from working for a competitor. EqualLogic was acquired by computer giant Dell for approximately $1.4 billion… Continue Reading
Our own Robert Milligan and Damon Anastasia published an oustanding article in the California Lawyer on the status of the law in California on non-competition agreements in light of Edwards v. Arthur Anderson. The article is publicly available here.
In Southern Fire Analysis v. Rambo, No. M2008-00056-COA-R3-CV, 2009 WL 161088 (Tenn. Ct. App. Jan. 22, 2009), the Tennessee Court of Appeals reversed a trial court’s dismissal of a complaint alleging violations of three non-compete agreements. The facts are as follows: Plaintiff Southern Fire Analysis is in the business of investigating fires on behalf of insurance… Continue Reading
Just before the end of 2008, Georgia’s House Study Committee on Restrictive Covenants in the Commercia Arena, chaired by Representative Kevin Levitas, issued its final report, asking for support to ”[m]oderniz[e] Georgia law” and to “attract new business to our great state and retain those companies that are already located here.” Following two hearings involving testimony and letters from… Continue Reading
In D.L. Anderson’s Lakeside Leisure Co. v. Anderson, the Wisconsin Supreme Court recently upheld an award of damages for violation of a non-compete provision in a sale of business agreement. The facts of situation are as follows: D.L. Anderson built D.L. Anderson Co., a business offering a range of marine services and products, such as shore… Continue Reading
As a result of the instability in the financial markets generally and at financial institutions in particular, the financial services industry has experienced significant turnover in 2008. The below chartrecently found in the New York Times reflects that the financial services industry has experienced more layoffs than any other industry. Because of the importance… Continue Reading
By James McNairy & Robert Milligan A new Ninth Circuit case, Asset Marketing Systems, Inc. v. Gagnon, 2008 WL 4138181 (Sept. 9, 2008), acknowledges (at least in dicta) that there is a trade secrets exception to Business and Professions Code Section 16600. In the case, Gagnon, an independent contractor who developed computer programs for AMS,… Continue Reading
This morning (September 24, 2008), Rep. Kevin Levitas and Sen. Judson Hill from the Georgia Legislature convened the first meeting of a legislative study committee reviewing the law of Georgia with respect to restrictive covenants in employment and business relationships. The House Committee is chaired by Representative Kevin Levitas, and includes the following members: Representative Tim Bearden;… Continue Reading
Following is a Press Release from the Georgia House of Representatives. PRESS RELEASE FOR IMMEDIATE RELEASE Contact: Lindsey Thompson August 26, 2008 (404) 656-5020 firstname.lastname@example.org Speaker Richardson Appoints Representative Kevin Levitas to Chair House Study Committee on Restrictive Covenants in the Commercial Arena ATLANTA –Speaker of the House Glenn Richardson (R-Hiram) has… Continue Reading
On August 6, 2008, New York Governor David A. Paterson signed Bill S02393, dubbed the “Broadcast Employees Freedom to Work Act” into law. The act, amends the New York Labor Law so as to prohibit non-compete agreements in the broadcasting industry. The enactment is effective immediately, and is codified as section 202-k of the Labor Law… Continue Reading
In Baird and Warner Residential Sales, Inc. v. Mazzone, No. 1-07-2179, the Illinois Appellate Court, First District reversed the circuit court’s determination that a restrictive covenant between Patricia Mazzone and her former employer, real estate broker Baird & Warner, was unenforceable as a matter of law. The ruling was issued in June as an unpublished order… Continue Reading