Articles Posted in Non-Compete Agreements

Companies are fictional entities that can only act through their agents. So logically, if a company is bound by a non-compete agreement, then it may also be enforced against the company’s officers. In other words, if a signatory company’s officer opens up a new company for the purpose of competing in a way that violates…

Non-compete agreements are often drafted with broad provisions to prevent a business’s former employee from competing for its customers for a period of time. To be enforceable non-compete agreements must be based on a legitimate business interest, such as trade secrets, confidential information, and substantial customer relationships. However, a legitimate business interest must be harmed…

Courts generally have discretion as to whether to grant an injunction to enforce a non-compete agreement. That discretion, however, does not allow courts to avoid enforcing a valid non-compete agreement which has been breached. Peter Mavrick is a Boca Raton non-compete attorney and business litigation attorney who has substantial experience with non-compete litigation, including injunction…

Prior material breach is a defense to a contractual claim when an employer breached an essential term of the contract. The effect of this defense against enforcement of the non-compete agreement is that the employee can be released from his or her obligations under the contract. Because sexual harassment is strongly prohibited by both Florida…

Prior breach is a common defense to a lawsuit to enforce a confidentiality provision (similar to a non-compete agreement). Generally, a material (essential) breach of an agreement allows the non-breaching party to treat the breach as a complete discharge of his or her contractual liability. In re: Walter M. Thomas, Debtor, 51 B.R. 653 (M.D.…

Florida law generally requires that a party post a “bond” before a Judge will enter an injunction order that prohibits the opposing party from competing in violation of a non-compete agreement. The purpose of requiring a bond as a condition to issuance of a temporary injunction is to provide a sufficient funds to cover the…

Florida law governing non-compete agreements imposes specific requirements for a contractual “assignment” provision to be considered valid. Florida Statutes Section 542.335(1)(f)(2) requires assignment of a non-compete provision to be expressly authorized by the contract in order to be enforced by an employer’s assignees or successors. Florida courts interpret the plain meaning of the wording of…

Forum selection clauses are contract provisions intended to assign the forum where any disputes under the contract will be resolved, such as Broward County or Miami-Dade County, Florida. While signatories to the contract have agreed to be bound to the forum selected in the agreement, it is not always evident whether non-signatories will be bound.…

Non-compete agreements often prohibit competition with other companies that are “similar to” or “competitive with” their own company. The wording of a non-compete covenant, however, can sometimes be understood to refer to the method of the business as opposed to the products or services being sold. Under Florida law, a non-compete agreement that prohibits doing…

For a trade secret to be protectable under Florida law, a business must protect that information as confidential. Disclosure of trade secret information to parties without an understanding that the information must be protected as confidential can cause that information to no longer be a protectable trade secret. In the absence of an express confidentiality…