When disputes arise over which version of a non-compete agreement was the final version executed by and binding on the parties, discovery of pre-contract negotiations may become necessary. Parties often retain an attorney for those negotiations. If the attorney involved in the negotiations becomes a witness to the case, attorney-client communications may need to be…
Continue reading ›Non-compete provisions in employment contracts are not prohibited so long as such contracts are reasonable in time, area, and line of business. In any action concerning enforcement of a non-compete provision the court considers the terms of the contract as agreed to by the parties. If the non-compete period has expired, a court may not…
Continue reading ›It has long been recognized that before injunctive relief can be granted a movant must show irreparable injury. Langford v. Rotech Oxygen & Medical Equipment, Inc., 541 So.2d 1267 (Fla. 5th DCA 1989). Many non-compete contracts will contain a provision that stipulates that a violation of the restrictive covenant not to compete would create an…
Continue reading ›A party seeking a temporary injunction to enforce a non-compete agreement must establish four elements: (1) a likelihood of irreparable harm and the unavailability of an adequate remedy at law; (2) a substantial likelihood of success on the merits; (3) the threatened injury to the petitioner outweighs any possible harm to the respondent, and (4)…
Continue reading ›Florida’s Non-Competition Covenant Statute, § 542.335, permits agreements that restrain competition so long as the agreement meets certain statutory requirements. One of the statutory requirements is that the party seeking to enforce the non-compete agreement must “plead and prove the existence of one or more legitimate business interests justifying the restrictive covenant.” § 542.335(1)(b), Florida…
Continue reading ›Under Florida law, a restrictive covenant is not enforceable “unless it is set forth in a writing signed by the person against whom enforcement is sought.” Fla. Stat. § 542.335(1)(a). So, what happens if the written agreement is lost, destroyed or stolen? Generally, the loss or unintentional destruction of a written document does not affect…
Continue reading ›Under Florida law, noncompete agreements signed after July 1996 are governed by Florida Statutes § 542.335. This statute is the basis for court decisions as to whether any non-competition contract can be enforced in the State of Florida. Over the years, court decisions have grappled with two related issues: (1) whether a non-compete agreement is…
Continue reading ›A non-compete covenant in an employment contract prohibits a former employee from competing with his/her former employer for a specified term after termination of employment. If the worker continues to work for the employer in a status other than an “employee”, then the starting point for the non-compete period may be affected. The determination of…
Continue reading ›Under Florida law, a restrictive covenant is not enforceable “unless it is set forth in a writing signed by the person against whom enforcement is sought.” Fla. Stat. § 542.335(1)(a). By this general rule, injunctions to enforce non-compete provisions are primarily entered against the parties to the contract. However, Florida law allows a court to…
Continue reading ›A non-competition provision in an employment contract prohibits an employee from competing with his/her employer for a specified term after termination of the agreement. However, if that employee stays on with the employer on an at-will basis after the term of the written agreement expires, then the agreement does not automatically renew for another term.…
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