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Around 2010, non-compete abuse in America reached peak absurdity. As I have explained many times: This was a a product of the following factors: (1) The internet and the information age. (2) Widespread availability of copy and paste non-compete agreements. (3) Corporate lawyers pushing aggressive use of non-compete agreements as a revenue generation tool. Make … Continue reading
Proving once again that corporate greed knows no limits, real estate firm Cushman Wakefield recently sued a former janitor, Sonia Mercado, for violating a non-compete agreement. The Washington Post broke the story. Immediately thereafter, following public outcry and a rash of negative publicity, Cushman caved and agreed to drop the lawsuit. Although that is a … Continue reading
It’s time to take a hard look at non-compete agreements in the car business. Let’s use an example: AutoNation, the Fort-Lauderdale-based car industry giant and Fortune 500 company. For the past twenty years or more, AutoNation has had a field day filing weak non-compete lawsuits. AutoNation files these cases in its backyard, the United States … Continue reading
Nike has sued three former employees who left to work for Adidas. The company is suing for everything imaginable: Breach of contract, theft of trade secrets, fraud, conspiracy and more. In a fifty page Complaint, the athletic apparel giant lays out a host of fairly shocking allegations against a team of three designers who launched … Continue reading
A recurrent theme in non-compete litigation is the overriding importance of choice-of-law. The latest example comes to us from the United States District Court for the Southern District of Texas and pits a Texas choice-of-law provision against Oklahoma public policy. Let’s take a look: Sometime in early 2013, Tulsa, Oklahoma based F&M Bank began talks … Continue reading
An interesting case out of the Eastern District of North Carolina reminds us of the importance of choice of law when dealing with non-compete litigation. Let’s take a look: In December 2009, Associated Hygienic Products (“AHP”) hired James DeFelice as the Director of Purchasing. AHP makes disposable diapers. This is a huge and growing market … Continue reading
A recent non-compete case out of Florida’s Third District Court of Appeals deals with the issue of restrictive covenants and independent clauses. Let’s take a look: In the Trial Court Defendants Dale Denton and David West were employees of Richland Towers, Inc. They signed employment agreements with Richland that contained, among other restrictive covenants, non-compete … Continue reading
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