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In California, a non compete given in return for the sale of a business’ goodwill is one of the few exceptions to the state’s broad prohibition against non competes. In Fillpoint, LLC v Maas, a California appellate court narrowly construed the exception and invalidated a non compete/non solicit agreement contained in an employment agreement which was signed in connection with the sale of goodwill.
Continue Reading California Court Invalidates Non Compete Tied to the Sale of Goodwill

In Western Blue Print Company, LLC v. Myrna Roberts et al., the Missouri Supreme Court recently affirmed a tortious interference verdict against a manager who left to join a competitor, largely because the manager engaged in inappropriate conduct when departing one employer for another. While such tortious interference claims are commonly raised in disputes with former employees who leave to join a competitor, actual determinations of the merits of such claims are not common, and state supreme court parsings of such claims are even less common. Accordingly, this decision is worth reviewing.
Continue Reading Missouri Supreme Court Affirms Tortious Interference Verdict Against Manager Who Went To A Competitor

In a recent decision, the Utah Court of Appeals broadly interpreted the preemption clause in the Uniform Trade Secrets Act (“UTSA”) to hold that it “preempts claims based on the unauthorized use of information, irrespective of whether that information meets the statutory definition of a trade secret.”…
Continue Reading Utah Decision Broadly Construes The Uniform Trade Secrets Act’s Preemption Provision

A recent opinion from the Supreme Court of Kansas held that multiple jury instructions which had led to a verdict for a plaintiff asserting claims of trade secret misappropriation and breach of certain restrictive covenants were erroneous, and accordingly reversed the jury verdict and remanded the action back to the trial court.
Continue Reading Erroneous Jury Instructions Cause Kansas Supreme Court To Reverse Jury Verdict In Trade Secret/Restrictive Covenant Case

A federal district court in Alabama denied a request for a preliminary injunction from clothing manufacturers Fruit of the Loom, Inc. and Russell Brands, LLC, seeking to prohibit a former employee, on the basis of a non-compete agreement, from continuing to work for a competitor at which he had been employed for two months.
Continue Reading Delayed Request for Preliminary Injunction to Enforce Non-Compete Agreement Denied in Alabama

A recent New York case, Edelman v. Starwood Capital Group, LLC, 2009 NY Slip Op. 09309 (1st Dep’t December 15, 2009), is another reminder that companies should take appropriate precautionary steps when dealing with confidential information.
Continue Reading A “Confidentiality” Stamp is Not Enough: According to the New York Appellate Division First Department

A trial court in Chicago recently held that because a restrictive covenant did not contain a provision extending the restricted period during any time of breach, there was no basis to re-write the contract to extend the restricted period. The court also declined to extend the restricted period on any equitable basis.
Continue Reading Illinois Decision Reaffirms Importance Of Tolling Provisions In Restrictive Covenants