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
Let that sink in: AAMCO sued two former franchisees, a husband and wife couple, for breaching a non-compete agreement. AAMCO was represented in the litigation by a team of lawyers from three law firms. And they lost to two pro se litigants. Let’s take a look: AAMCO is a franchisor of transmission repair centers based … 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
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 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
Florida continues to be a hotbed for non-compete litigation (possibly in light of the fact that Florida non-compete laws are among the most pro-employer in the country). A recent case out of the United States District Court for the Southern District of Florida in Miami pits National Deli, one of America’s largest manufacturers of deli … Continue reading
A recent decision out of New York’s Appellate Division, Fourth Department, raises the interesting consideration of non-compete agreements and rescission. The case apparently has been in litigation for several years, but the recent appellate decision is worth a look. Back in 2004, Richard Smith left a company called Lenel Systems, which develops, manufactures and sells … Continue reading
Devicor Medical Products, a major player in the medical device industry, has lost its bid to prevent a former employee from working for Hologic, a company with divisions that compete against Devicor in the breast biopsy product market. In June 2005, Keith Reed began work as a sales representative for Ethicon Endo-Surgery, Devicor’s predecessor. In … Continue reading
Last week, the Texas Court of Appeals affirmed a trial court order finding a physician non-compete agreement unenforceable as against public policy. Although Texas has no outright ban on physician non-compete agreements (like Massachusetts or Alabama), the decision suggests that Texas courts may be willing to invalidate physician non-compete agreements where there is evidence of … Continue reading
Most of the calls I receive in my Fort Lauderdale office are from people who have just received a cease and desist letter from a law firm that represents their former employer. You know the story. They worked for one company, moved on to another company and are now being accused of violating their non-compete … Continue reading
