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Antitrust claims based on employee non-compete agreements generally fail because the plaintiff cannot establish antitrust standing. In the Eleventh Circuit, the test for antitrust standing requires the plaintiff show (1) antitrust injury and (2) that he or she is an efficient enforcer of the antitrust laws. The first prong – antitrust injury – is satisfied … Continue reading
A recent case out of the Louisiana Court of Appeal reminds us that some states will enforce physician non-compete agreements, even in the absence of a clear protectable interest and even where such enforcement threatens harm to the public. But the case does more than that: It forces us to take a hard look at … Continue reading
In 2014, the Judicial Panel on Multidistrict Litigation consolidated a series of antitrust actions and transferred them to the United States District Court for the Middle District of Florida. The Middle District of Florida now presides over the multidistrict litigation entitled In re Auto Body Shop Antitrust Litigation, which includes cases originally filed in fifteen … Continue reading
A recent case out of the Eastern District of New York raises interesting questions about the use of non-compete agreements in connection with merger talks. Let’s take a look: Calico Cottage, Inc. is a New York company engaged in the wholesale fudge business. That’s right. Calico sells both the ingredients needed to make fudge, fudge … Continue reading
In the past few months, we have seen a number of decisions involving non-compete issues in the grocery industry— from appellate courts, no less. That trend continues. This case comes out of the Eighth Circuit and involves some of my former colleagues from Boies, Schiller & Flexner. C&S and SuperValu are the two largest grocery … Continue reading
A recent non-compete dispute in Florida raises questions about the concept of legitimate business interests under Florida law. Until October, prominent Florida chef Domenica Macchia ran the kitchen at a St. Petersburg restaurant called Three Birds Tavern. After leaving Three Birds last fall, Macchia became the chef at another local restaurant called Beak’s Old Florida. … Continue reading
Recent developments in Pennsylvania provide yet another compelling example of why non-compete agreements in the healthcare sector should be void as against public policy. In late December, five obstetricians who were affiliated with the University of Pittsburgh Medical Center (UPMC) gave notice that they intended to leave the system to go work for rival Highmark … Continue reading
Last week, the Federal Trade Commission issued a final decision approving a consent order that will invalidate the non-compete agreements of ten cardiologists who are terminating their employment with Renown Health in Reno, Nevada. The move has been expected since late this summer, when the parties reached a tentative agreement on the matter. The situation … Continue reading
On Friday, the Department of Justice filed a lawsuit against eBay accusing the company of entering a non-compete pact with software maker Intuit. Under the terms of the alleged secret deal, both companies agreed to refrain from recruiting or hiring each other’s employees. According to the DOJ, both companies aggressively policed their respective workforces to … Continue reading
The Zynga saga continues. In October, Zynga – the company that makes popular Facebook games like FarmVille – filed a lawsuit against a former employee, Allan Patmore. In short, Zynga alleges that Patmore left the company, took a ton of confidential information and trade secrets with him then went to work for a competitor Kixeye. … Continue reading
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