Articles Posted in Non-Compete Agreements

Non-compete agreements between employers and their employees sometimes contain “forum selection clauses” that dictate where subsequent lawsuits related to the non-compete agreement can be filed. Under Florida and federal law, forum-selection clauses are presumptively valid absent a “strong showing” that enforcement would be unfair or unreasonable under the circumstances. It is important for employers to…

Employees owe their current employers a duty of loyalty under Florida law. This duty of loyalty is a specific fiduciary duty that requires employees to act in the best interest of their current employers. One example of such a breach is where an employee who starts a competing business while still working for the employer.…

The recent appellate decision from Florida’s Second District Court of Appeal in Capital Wealth Advisors, LLC v. Capital Wealth Advisors, Inc., 2021 WL 4898462 (Fla. 2d DCA 2021), clarified whether a business can get out of a financially unfavorable contract on the grounds that its “lopsidedness or open-endedness” is an invalid restraint on trade or…

Florida law sets forth detailed statutory rules governing enforcement of restrictive covenants, commonly known as “non-compete agreements.” Florida Statutes, section 542.335, provides that parties may agree to restrict or prohibit competition in certain circumstances, so long as they protect one or more legitimate business interests and are reasonable in geographic and temporal scope. In determining…

Forensic examinations of cellular phones and other electronic devices are needed when a party willfully withholds relevant information during discovery or where a party is unwilling or unable to search their electronic devices on their own accord. Federal courts can order a party to submit their electronic devices for a forensic examination in business litigation…

It is critical that Florida employers carefully write their non-compete agreements to ensure they are enforceable and prevent employees from performing the types of activities that the employer needs. Non-compete law in Florida is nuanced and slight deviations in contract wording can sometimes mean the difference between success or failure. Peter Mavrick is a Miami…

The decision whether to bring a case in federal court or Florida state court can have significant consequences to the disposition of non-compete litigation. While both federal and Florida will usually apply the same substantive law, the procedure applied differs. This is particularly pertinent in non-compete litigation. Florida courts, when considering whether to enjoin a…

Preservation of a business’ trade secrets may constitute a legitimate business interest that justifies the enforcement of a non-compete agreement. However, it is vital that a business seeking to enforce the non-compete agreement sufficiently prove the existence of the trade secret. General statements that the business has such valuable information cannot act as a substitute…

Noncompete agreements sometimes designate the laws of other states to govern the parties’ contractual obligations, even if the agreement is made in Florida. This is known as a choice of law provision. When these choice-of-law provisions are valid and enforceable, they can have significant repercussions on the results of noncompete litigation. Peter Mavrick is a…

Florida employers who seek to protect their client lists from misappropriation by former employees will often need to show that the client list was a trade secret. This is important even when the former employee is subject to a non-compete agreement. This is because non-compete agreements cannot be enforced without a “legitimate business interest,” and…