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Courts are divided on the enforceability by an assignee of a non-compete covenant relating to personal services where the covenant does not state whether it is assignable and the employee does not consent to the assignment.

Status of the case.  A non-compete agreement signed by an employee of TSG, Inc., purported to be effective for two years after his termination …
Continue Reading Appellate Court Holds That Non-Compete Agreement Assigned Pursuant to Bankruptcy Court Order is Enforceable by Assignee

An employee executed an employment agreement which included a two-year covenant not to solicit the employer’s customers.  When the employer sold the company’s assets, the sale included that agreement.  The employee then went to work for the assets purchaser but subsequently resigned.  The Texas Appellate Court held that the two-year period began to run on the date the assets seller …
Continue Reading Customer Non-Solicitation Covenant Runs From Date Employment With Asset Seller Terminated, Not From Later Date Employment With Asset Purchaser Ended

The Supreme Court of Ohio yesterday issued its decision on a motion to reconsider the Court’s opinion announced May 25, 2012 regarding an important non-compete issue.

In that earlier sharply divided ruling, the Court affirmed the appellate court’s holding that non-competition agreements entered into by a corporation and then transferred by operation of law to an L.L.C. into which the…
Continue Reading Ohio Supreme Court Reverses Course In Important Non-Compete Decision

A Connecticut federal court recently issued a significant decision concerning the rights of a buyer of a business to enforce non-competition agreements against employees who previously worked for the seller under New York law.

In 2003, Milso and each of its employees signed an employment agreement expressly governed by New York law. The agreement contained confidentiality, non-solicitation and non-competition covenants…
Continue Reading Connecticut Federal Court Finds That Non-Competition Covenant Which Is Silent Regarding Assignability May Be Enforceable Depending Upon the Parties’ Intent Under New York Law