Articles Posted in Non-Compete Agreements

A business purchaser often requires the seller to sign a non-compete provision as part of the sale. Purchasers usually require non-compete provisions to prevent the business seller from starting a new rival business that deprives the purchaser of the value of the assert he or she purchased. The same logic applies to the business’s employees.…

A business that is unsure about its contractual rights may be able to assert a claim for declaratory judgment. Under Florida Statute § 86.011, courts may “render declaratory judgments on the existence, or nonexistence: (1) of any immunity, power, privilege or right; (2) of any fact upon which the existence of nonexistence of such immunity,…

            Businesses often rely on restrictive covenants to protect their sensitive business information and to protect themselves from unfair competition. Businesses often require employees to sign non-compete agreements and employee confidentiality agreements to accomplish these goals. Businesses also often include similar provisions when they purchase all or part of another business. A purchaser will include…

The defenses of unclean hands and in pari delicto are useful in commercial and business disputes.  These are similar defenses that arise when the party bringing the lawsuit possesses a level of fault or guilt. Unclean hands and in pari delicto can be applied in business disputes under certain circumstances to prevent an actor from…

Restrictive covenants, such as non-solicitation and non-compete agreements, are important tools for businesses to protect their business interests. Restrictive covenants are enforceable if they are reasonable in time, geographic area, line of business, and supported by a “legitimate business interest.” Fla. Stat. § 542.335. Florida Statutes section 542.335 contains a non-exhaustive list of legitimate business…

A lawsuit is generally considered over once a litigant obtains judgment in its favor assuming no appeal is taken and no post-judgment collection issues exist. However, the losing party is often left unsatisfied. Therefore, the loser may try to “re-do” the lawsuit by suing the defendant again using slightly different claims or lodging the lawsuit…

Businesses commonly enter into restrictive covenants with their employees to prohibit them from unfairly competing with the business during and after employment. Restrictive covenants include contracts that restrict competition, such as non-compete agreements, non-disclosure agreements, and confidentiality agreements. When preparing a restrictive covenant, what provisions should be included? Typically, a business should include provisions that…

The Federal Trade Commission’s (FTC) rule banning most non-compete agreements continues to produce legal developments. Conflicting opinions were previously issued by a court in the U.S. District Court for the Northern District of Texas and by a court in the U.S. District Court for the Eastern District of Pennsylvania. In Ryan LLC v. FTC, Case…

Developments regarding the Federal Trade Commission’s (FTC) prohibition of non-compete agreements continue. Recently, a court in the Eastern District of Pennsylvania denied a motion for preliminary injunction to prevent enforcement of the ban in ATS Tree Services, LLC v. FTC, Case No. 2:24-CV-01743, 2024 WL 3511630 (E.D. Pa., July 23, 2024). This decision conflicts with…

The Federal Trade Commission (FTC) controversially issued a final rule banning most non-compete agreements. This rule severely impedes the ability of businesses to protect their legitimate business interests such as customer relationships, goodwill, confidential business information, and trade secrets. However, the FTC’s rule is facing legal challenges from different directions. Last week we wrote about…