Last week, the Wall Street Journal ran a story about non-compete agreements making it difficult for younger journalists to get new jobs and move up in the news world. The article focused substantially on a young journalist named Stephanie Russell-Kraft who moved from Law360 to Thomson Reuters. Shortly after beginning work at Thomson Reuters, her … Continue reading
A recent case out of Florida’s Fifth District Court of Appeals raises important raises important issues related to physician non-compete agreements. Let’s take a look: Before addressing the specifics of this case, some context is necessary: Agreements not to compete are restraints of trade. In any non-compete case, there are two lenses: restraint of trade … Continue reading
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
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
There are huge problems with agreeing to this sort of consent order. In litigation, a defendant can attack a non-compete or non-solicitation agreement in numerous ways, particularly in the staffing industry context. But once the defendant agrees to a consent order, its over. After a consent order has been issued, the defendant no longer has any right to challenge the enforceability of the restrictions on the merits. 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
A recent case out of the Eastern District of Missouri provides a perfect example of what judges should do when evaluating non-compete agreements: That is to say that judges should conduct a thoughtful analysis that accounts for the realities of the marketplace. Far too often, I find that enforcement of non-compete agreements involves dogmatic references … 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
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