Articles Posted in Business Litigation

You may recall last week we discussed Florida’s Choice Act and the changes it may create to the non-compete landscape in Florida. The Choice Act establishes significantly more stringent non-compete restrictions on employees and independent contractors earning, or are reasonably expected to earn, a salary greater than twice the annual mean wage of the Florida…

A common business dispute involves two business partners who disagree about the ownership split of the business. This dispute often arises from poor documentation, which can lead to protracted and expensive litigation. Ownership rights often turn on simple contract principles like offer, acceptance, and consideration. Jacob v. Bernatek, 764 So. 2d 874 (Fla. 4th DCA…

            Florida law on noncompete agreements will likely change on July 1, 2025, under the “Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act” (CHOICE Act). The CHOICE Act will substantially enhance an employers’ ability to restrict certain employees from competing after their employment with the employer ends. The Fort Lauderdale business litigation attorneys of…

American law recognizes that the protection of trade secrets results in substantial benefits to businesses and society. Kewanee Oil Co. v. Bicron Corp., 416 U.S. 470 (1974). Protecting commercial entities trade secret theft encourages investment in processes and technologies benefiting consumers. Therefore, trade secret laws promote “the efficient operation of industry” by affording those who…

            Florida law recognizes the defense of accord and satisfaction in contract disputes. The defense applies when contracting parties agree to resolve their dispute by accepting performance of an obligation that differs from the original obligation required under the contract. Jacksonville Elec. Authority v. Draper’s Egg & Poultry Co., 557 So. 2d 1357 (Fla. 1990)…

Florida’s general rule prohibits contracts impeding commerce. Fla. Stat. § 542.18. (“Every contract, combination, or conspiracy in restraint of trade or commerce in this state is unlawful.”). However, Florida’s legislature passed house bill 611 and 375 in the mid-1990’s to create an exception for restrictive covenants like non-compete agreements, non-solicitation agreements, and confidentiality agreements under…

The acts of an agent are imputed to the agent’s principal so long as the agent acted within the scope of his or her authority. The scope of that authority is often derived from actual or apparent authority provided by the principal. Taco Bell of Cal. v. Zappone, 324 So. 2d 121 (Fla. 2d CA…

Most trade secret statutes provide the owner of a trade secret with an injunction remedy prohibiting another from disclosing the owner’s trade secret. Florida’s trade secret statute expressly provides that an injunction is permissible when disclosure is actual or threatened. Fla. Stat. § 688.003. (“Actual or threatened misappropriation may be enjoined.”). However, some courts have…

A corporate shareholder has special rights that non-shareholders do not have. Shareholders can vote at annual meetings and may be eligible for dividends. Shareholders can also demand to inspect the company’s book and records under certain conditions. Florida, like most states, enacted a statue expressly authorizing the inspection and copying. Fla. Stat. § 607.1602.  However,…

Establishing the existence of a legitimate business interest is the foundation to enforcing a restrictive covenant like a non-competition agreement. Fla. Stat. § 542.335 (“The 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 law imposes a burden to…