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Articles Posted in Non-Compete Law

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FLORIDA NON-COMPETE LAW: FORUM SELECTION CLAUSES IN NON-COMPETE AGREEMENTS MAY BE ENFORCED UNLESS THEY CAN BE SHOWN TO BE UNREASONABLE OR UNJUST

A forum-selection clause is a structural provision of a contract that addresses the procedural requirements for dispute resolution. In other words, the contracting parties may choose which forum, i.e. which federal or state court, for prospective disputes to be filed.  Courts must enforce forum-selection agreements unless they are shown to…

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FLORIDA NON-COMPETE LAW: COURTS REQUIRE PROOF OF PARTICULAR FACTS TO ESTABLISH A LEGITIMATE BUSINESS INTEREST FOR A NON-COMPETE AGREEMENT

Any competition by a former employee may injure the business of the former employer. However, the former employer cannot restrain ordinary competition. To be entitled to protection, the former employer must show special facts over and above ordinary competition which show that the former employee would have an unfair advantage…

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FLORIDA NON-COMPETE LITIGATION: ATTORNEY-CLIENT PRIVILEGED COMMUNICATIONS ABOUT NON-COMPETE NEGOTIATIONS MAY BE SUBJECT TO DISCLOSURE

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…

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FLORIDA NON-COMPETE AGREEMENTS: NON-COMPETE PERIODS MAY NOT BE EXTENDED UNLESS THERE IS AN EQUITABLE REASON

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…

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FLORIDA NONCOMPETE AGREEMENTS: STIPULATIONS TO IRREPARABLE INJURY IN NON-COMPETE CONTRACTS MAY NOT BE ENFORCEABLE

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…

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FLORIDA NON-COMPETE LAW: COURTS SCRUTINIZE THE CONTRACTUAL WORDING WHEN DECIDING THE SCOPE OF A NON-COMPETE COVENANT

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…

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FLORIDA NON-COMPETE AGREEMENTS: ADVERTISING BIOGRAPHICAL INFORMATION MAY NOT VIOLATE A NON-COMPETE AGREEMENT

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…

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FLORIDA NON-COMPETE LAW: ANTITRUST ISSUES WHEN EMPLOYERS AGREE NOT TO SOLICT EACH OTHER’S EMPLOYEES

Many employers possess confidential information vital to generating profits. Employers routinely entrust employees with this information to facilitate business operations, but employees often leave their job after a few years to work for a competitor. When this happens, the employee takes the confidential information he or she learned to the…

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FLORIDA NON-COMPETE AND RELATED TORT LAW: WHEN DO AN EMPLOYEE’S ACTIONS BEFORE ENDING EMPLOYMENT CONSTITUTE TORTIOUS INTERFERENCE AS OPPOSED TO LAWFUL PREPARATION TO COMPETE?

It is well settled in Florida law that “an employee does not violate his duty of loyalty when he merely organizes a corporation during his employment to carry on a rival business after the expiration of his employment.” Fish v. Adams, 401 So.2d 843 (Fla. 5th DCA 1981). Absent a…

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FLORIDA NON-COMPETE AGREEMENTS: CAN A LOST OR STOLEN AGREEMENT BE ENFORCED?

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…

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