Archive for the ‘Noncompete Agreements’ Category

Fairfax Circuit Court Declines To Enforce Noncompete Agreement

Monday, August 23rd, 2010

Virginia Lawyers Weekly has an article here on a recent decision by the Fairfax County Circuit Court involving a noncompete agreement.  More after the break.

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Contributed by Eric A. Welter.

Another Circuit Court Refuses To Enforce A Virginia Noncompete Agreement

Monday, April 12th, 2010

A Virginia Circuit Court recently struck down a noncompete agreement between an employer and a former employee as overbroad in scope.  More after the break.

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Contributed by Eric A. Welter.

Clear Showing Of Actual & Immediate Irreparable Harm Must Be Proven For Injunctive Relief

Monday, November 2nd, 2009

In FBR Capital Markets & Co. v. Karen Short, the United States District Court for the Eastern District of Virginia found that FBR failed to present sufficient evidence to warrant the granting of a temporary restraining order in connection with a covenant not to compete because it did not make an adequate showing of a likelihood of irreparable harm.  More after the break.

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Contributed by Eric A. Welter.

Dispatcher Wins Noncompete Suit

Tuesday, August 25th, 2009

Virginia Lawyer’s Weekly has an article here on a delivery dispatcher who won a noncompete suit in Fairfax Circuit Court.  The Court struck down the noncompete as overbroad under the “janitor” rule — i.e. the noncompete would have prohibited the former employee from working even as a janitor at a competitor.  the Court also refused to apply a provision in the agreement allowing the Court to modify the agreement, finding that Virginia disfavors such “blue pencil” provisions.

Contributed by Eric A. Welter.

4th Circuit Decides Business Noncompete Case

Tuesday, March 17th, 2009

For those interested in this kind of thing, the Fourth Circuit recently issued an unpublished opinion in the second appeal in a case involving a covenant not to compete given in connection with the sale of a business.  In Western Insulation, L.P. v. Moore, the Fourth Circuit affirmed the district court’s finding that the Moores had breached the covenants in their contracts with Western Insulation, L.P. (“Western”) for the sale of their business and the granting of a permanent injunction.  The contracts included confidentiality, non-competition and non-solicitation provisions, which the lower court previously found to have been violated when Melanie Moore started a competing insulation business within the timeframe covered by the non-competition provision.  The Court’s earlier decision had reversed an award of substantial damages by the district court.  The Court’s unpublished opinion can be found here.  The Court’s opinion in the first appeal can be found here.  More after the break.

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Contributed by Eric A. Welter.

Virginia Supreme Court Upholds Termination Of Non-Compete With Agreement

Thursday, January 15th, 2009

In an unpublished order dated January 9, 2009, the Supreme Court of Virginia found that the termination of an employment contract also terminated the non-compete as a matter of law based on the language of the agreement.  A copy of the order is here.  More after the break.

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Virginia Supreme Court Upholds Demurrer To Non-Compete Suit

Tuesday, December 30th, 2008

In KBH Corporation vs. David R. McGeorge Car Company, Inc., decided December 12, 2008, in an unpublished order, the Virginia Supreme Court sustained a demurrer to a complaint seeking to enforce a non-compete agreement.  A copy of the Court’s order is here.  More after the break.

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Western District of Virginia Denies Motion To Dismiss Noncompete-Related Claims

Friday, August 15th, 2008

In a memorandum opinion issued on August 12, 2008, the U.S. District Court for the Western District of Virginia denied an individual’s motion to dismiss a case filed against him involving his resignation and acceptance of a position with a competitor.  A copy of the opinion is here.

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One Consideration When Suing A Former Employee

Monday, July 21st, 2008

A Virginia resort now faces a class action lawsuit over overtime wages after filing a lawsuit against two timeshare sales employees seeking to enforce a noncompete agreement against them.  The story is here.  Since the filing of the overtime counterclaim by the two employees, the judge handling the case has opened it up to other similarly situated employees.  The result?  Some 100 former employees have joined the case seeking unpaid overtime, liquidated damages and attorneys’ fees.

It is important to remember when you file a lawsuit that the other side has the ability to file a counterclaim against you.  If you are living in a glass house, it may not make sense to throw the first stone.

Judge Strikes Down Noncompete And Nonsolicitation Agreement As Overbroad

Thursday, May 1st, 2008

On April 15, 2008, Judge Gerald Bruce Lee of the U.S. District Court for the Eastern District of Virginia granted a motion to dismiss breach of contract claims relating to an employee noncompete and nonsolicitation agreement in Nortel Communications, Inc. v. Carl Lee-Llacer, No. 1:08cv127 (opinion here: nortec-comm-inc-v-lee-llacer).  The court granted the motion because the provisions of the agreement at issue were not limited to the performance of the same work the employee had done for the company and because key terms were undefined.  This opinion highlights the changing law regarding noncompete agreements in Virginia during recent years.  Employers using such agreements in Virginia would be well advised to have them reviewed and updated for continued viability.

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General Assembly Fixes Loophole For Health Care Noncompete Agreements

Monday, March 17th, 2008

The Virginia General Assembly has attempted to clean up what appeared to be a loophole to allow medical professionals to escape noncompete agreements based on a recent decision by the Supreme Court of Virginia.  The bill was signed by the Governor on March 5, 2008.

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Is it time to think about protecting your company’s assets?

Monday, February 4th, 2008

Inc.com has an article on non-compete agreements in its February 2008 issue entitled “Protecting Company Secrets:  More Business Owners Are Forcing Their New Hires To Sign Noncompetes.  Should You?“  The article prompts me to ask the question:  is it time to think about protecting your company’s assets?

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