The Florida Deceptive and Unfair Trade Practices Act (FDUTPA), § 501.201 et seq., Florida Statutes, is a remedial statute intended “to protect the consuming public and legitimate business enterprises from those who engage in unfair methods of competition, or unconscionable, deceptive, or unfair acts or practices in the conduct of any trade or commerce.” §…
Continue reading ›Under Florida law, if a member of an LLC wishes to individually sue another member for damages arising out of the membership, the plaintiff-member must prove: “(1) a direct harm to the … member such that the alleged injury does not flow subsequently from an initial harm to the company and (2) a special injury…
Continue reading ›All businesses, especially those that may become the target of a merger or acquisition, that want their successor entities or assignees to have the right to enforce non-compete agreements against their former employees should include a provision that allows third-parties to enforce the non-compete agreements. Unless a non-compete agreement expressly authorizes enforcement of the non-compete…
Continue reading ›Most businesses that sell products or services encourage their salesmen to do whatever it takes to make a sale. This leads to the salesmen exaggerating regarding the quality of the product or service they are selling. Although exaggerations or statements promoting the quality of a product or service can lead to increased sales, it could…
Continue reading ›The Florida Supreme Court will soon release an opinion that settles whether unidentified prospective patients and referral physicians are protected legitimate business interests within the meaning of Florida’s Non-Compete Statute, § 542.335 Fla. Stat. On March 9, 2017, the Florida Supreme Court heard Oral Arguments in Americare Home Therapy, Inc., Etc. v. Hiles, a medical…
Continue reading ›As discussed in prior articles, Florida’s Non-Competition Covenant Statute, § 542.335, permits covenants restraining competition so long as the restrictive covenant meets certain statutory requirements. One of the statutory requirements is that the party seeking to enforce the restrictive covenant must “plead and prove the existence of one or more legitimate business interests justifying the…
Continue reading ›Fraud in the inducement is a common cause of action in business litigation. It typically involves a plaintiff alleging a contract he or she entered into with a defendant is not enforceable due to some misrepresentation or omission made by the defendant, which the plaintiff relied upon, inducing him or her to enter into the…
Continue reading ›An employer can protect its relationships former clients by establishing that an ongoing business relationship exists with the past client, or by presenting competent and substantial evidence to prove the existence of a substantial relationship within the meaning of § 542.335, Florida Statutes. Under Florida law, the key issue is that the court will view…
Continue reading ›Incorporating a business or forming a limited liability company (LLC) are both very smart decisions for business owners. While each one has its own individual benefits, both allow a business owner to protect his or her personal assets in case someone sues their business. However, sometimes individuals or businesses will form a corporation or LLC…
Continue reading ›Florida’s Non-Compete Covenant Statute, section 542.335, establishes certain requirements for covenants restraining competition, and once such statutory requirements are met, the restrictive covenant becomes enforceable. Section 542.335(1)(j) allows restrictive covenants to be enforced through a temporary injunction, which, pursuant to Rule 1.610(a)(1)(A) of the Florida Rules of Civil Procedure, may be granted only if “it…
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