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Non-Compete Agreements

This category contains 54 posts

Stryker Losing Non-Compete Fight in Michigan (It’s Getting Ugly)

A very important decision out of the Western District of Michigan touches upon several important aspects of non-compete litigation and particularly non-compete defense. Not surprisingly, the case pits Stryker against a former sales rep. Stryker, as many folks know, is notorious for aggressively enforcing its non-compete agreements. Let’s take a look: Christopher Ridgeway was hired … Continue reading

Eighth Circuit Weighs in on Assignment of Non-Competes

A recent case out of the United States Court of Appeals for the Eighth Circuit raises some interesting issues related to assignment of employee non-compete agreements.  Let’s take a look: Brandon Tipton, Michael Gilbert and Steven Padgett all worked for Treadway Electric Company in Arkansas.  Treadway was a distributor of electrical supplies and equipment. As … Continue reading

Non-Competes & Disintermediation (Cutting Out the Middle Man) – A Recent Case from NJ

A recent case out of the District of New Jersey addresses disintermediation as a legitimate business interest in the non-compete context.   Disintermediation is just a technical term for cutting out the middle-man. Let’s take a look: CarePoint Health Management Associates is a New Jersey hospital system. UpStream Healthcare Management Associates is a hospital management company … Continue reading

Physician Non-Compete Agreements and Antitrust

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

Non-Compete Nonsense: Louisiana Enforces Non-Competes Against Cardiologists (but not Car Dealers)

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

Brokers Switching Firms: The Protocol and Recent Developments

In August 2004, Merrill Lynch, Citigroup, and UBS entered a pact not to sue one another over client relationships in their wealth management businesses. This pact was known in the industry as the Protocol for Broker Recruiting or simply the Protocol. Under the Protocol, brokerages essentially agreed that individual brokers could move between firms and … Continue reading

Three Nike Employees Perpetrate Massive Theft of Trade Secrets then Bolt for Adidas

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

Texas Court Refuses to Apply Texas Choice of Law in Non-Compete Fight Involving Texas Bank

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

Merger Discussions & Non-Compete Agreements: A Recent Case from the EDNY

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

Choice of Law Has Huge Consequences, Especially in NC Non-Compete Case

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

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