Articles Posted in Non-Compete Agreements

FORT LAUDERDALE BUSINESS LITIGATION: NON-COMPETE AGREEMENT LITIGATION IN FEDERAL AND FLORIDA COURTS
Mavrick Law Firm

Much of non-compete agreement litigation centers on the availability of obtaining a preliminary injunction barring competition. As the United States Court of Appeals for the Eleventh Circuit explained in United States v. Lambert, 695 F.2d 536 (11th Cir. 1983), a preliminary injunction is “an extraordinary and drastic remedy” that is “the exception rather than the…

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MIAMI BUSINESS LITIGATION: NON-COMPETE AGREEMENTS BASED ON CONFIDENTIAL OR TRADE SECRET INFORMATION
Mavrick Law Firm

Under Florida’s non-compete statute, Florida Statutes Section 542.335(1)(b), “[t]he person seeking enforcement of a restrictive covenant shall plead and prove the existence of one or more legitimate business interests justifying the restrictive covenant.” The term “legitimate business interest” includes trade secrets (as defined in Florida Statutes Section 688.002(4)) and “valuable confidential business or professional information.”…

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MIAMI BUSINESS LITIGATION: ENFORCING NON-COMPETE AGREEMENT BASED ON “EXTRAORDINARY OR SPECIALIZED TRAINING”
Mavrick Law Firm

Florida law specifies, at Florida Statutes section 542.335, how and when a restrictive covenant (such as a non-compete agreement or non-solicitation agreement) may be enforced against a current or former employee. In a lawsuit to enforce an agreement that restricts or prohibits competition during or after the term of the restrictive covenants, section 542.335(1)(b) states…

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FORT LAUDERDALE BUSINESS LITIGATION: NON-COMPETE AGREEMENTS BASED ON TRADE SECRETS AND CONFIDENTIAL INFORMATION
Mavrick Law Firm

The State of Florida enacted Florida Statutes Section 542.335 to allow non-compete agreements where there is a “legitimate business interest.” Two frequently cited “legitimate business interests” are confidential information and trade secrets. In an employment context, a non-compete agreement based on “[v]aluable confidential business or professional information” (referenced in Florida Statutes Section 542.335(1)(b)(2)), Florida law…

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MIAMI BUSINESS LITIGATION: NON-COMPETE AGREEMENT AS PART OF BUYING A BUSINESS
Mavrick Law Firm

An important consideration when buying a business, whether via a stock purchase agreement or an asset purchase agreement, is whether the seller will take the sale proceeds and start a new, competing business. Typically, the seller would have a competitive advantage in competition with the new buyer of the business, due to such matters as…

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FORT LAUDERDALE BUSINESS LITIGATION: RECOVERY OF DAMAGES FOR TRADE SECRET MISAPPROPRIATION
Mavrick Law Firm

Corporations typically rely on employees to handle and safeguard confidential business information, including trade secrets. Under Florida law, a business can seek protection contractually, most often a non-compete agreement, to restrict an employee or former employee from competing by joining a competitor’s business, starting a competing business, or facilitating competition by using confidential or trade…

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MIAMI BUSINESS LITIGATION: EMPLOYMENT NON-COMPETES WOULD BE NULLIFIED BY PROPOSED FEDERAL TRADE COMMISSION RULE
Mavrick Law Firm

Under Florida law, non-compete agreements between employers and employees are allowed when they comply with the requirements of Florida’s restrictive covenant statute, Section 542.335, Florida Statutes. For years, Florida law has allowed non-compete agreements to protect apparent “legitimate business interests” referenced in Section 542.335(1)(b), such as, for example, protecting an employer’s interests in retaining trade…

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FORT LAUDERDALE BUSINESS LITIGATON: RECOVERY OF DAMAGES FOR BREACH OF NON-COMPETE AGREEMENTS
Mavrick Law Firm

Most litigation over restrictive covenants are resolved at the conclusion of the temporary injunction hearing. At that stage, the trial judge has made a decision whether the plaintiff is substantially likely to succeed on the merits of the case. The parties usually are motivated to settle the case at that point. However, in some cases…

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MIAMI BUSINESS LITIGATION: NON-COMPETE AGREEMENTS AND TRADE SECRETS
Mavrick Law Firm

Florida’s non-compete statute goes hand-in-hand with Florida law prohibiting trade secret misappropriation. Under Florida’s statute governing non-compete agreements, a trade secret is a “legitimate business interest” to restrict employees and former employees from competing against their former employers. Florida Statutes § 542.335(1)(b)(1) (legitimate business includes “trade secrets”). A restrictive covenant in Florida is given an…

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MIAMI BUSINESS LITIGATION: PRESUMPTION OF IRREPARABLE INJURY IN NON-COMPETE LAWSUITS
Mavrick Law Firm

Florida’s non-compete statute states in pertinent part, at Florida Statutes § 542.335(1)(j), that “[t]he violation of an enforceable restrictive covenant creates a presumption of irreparable injury.” There is a divergence, however, in the application of this presumption between Florida state courts and federal courts. Florida state courts routinely apply this presumption when the plaintiff proves…

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