The law regarding the enforceability of non-compete agreements varies by state. Under Florida law, three requirements must be satisfied for a restrictive covenant to be enforceable: (1) the restrictive covenant must be “set forth in writing signed by the person against whom enforcement is sought”; (2) the party seeking to enforce the restrictive covenant “shall…
Continue reading ›Non-compete agreements and other restrictive covenants in employment contracts are enforceable if they protect a business’ legitimate business interest. A “legitimate business interest must represent an investment by the employer and must enable unfair competition if misappropriated.” IDMWORKS, LLC v. Pophaly, 192 F. Supp. 3d 1335 (S.D. Fla. 2016). Florida’s non-compete statute, Section 542.335, includes…
Continue reading ›Business litigation often involves disputes between a corporate entity and its equity owners. A shareholder of a corporation can bring a lawsuit against the corporation in two circumstances: (1) when the shareholder has been personally harmed or (2) when the corporation as a whole has been harmed. The first type of lawsuit is a direct…
Continue reading ›In business litigation, tortious interference claims arise when another business or person unjustly interferes with the business or contractual relationships of another business. “The tort of tortious interference teeters between two competing values – the desire to protect the reasonable expectations of the parties to a business relationship on one hand, and the need to…
Continue reading ›Trade secret misappropriation claims are commonly filed in business litigation by employers against former employees. An employee is precluded from using for his or her own advantage, and to the detriment of a former employer, any trade secrets obtained in the course of prior employment. East v. Aqua Gaming, Inc., 805 So. 2d 932 (Fla.…
Continue reading ›In business litigation, claims alleging fraud and breach of contract are often filed in the same lawsuit. However, if the factual allegations or the damages sought in fraud claims are the same as those in the party’s breach of contract claim, then Florida’s independent tort doctrine may apply. Florida’s independent tort doctrine requires a fraud…
Continue reading ›A prevalent issue in business litigation is whether an injunction is needed to enforce a restrictive covenant and protect a party’s legitimate business interest. In Florida, Section 542.335, Florida Statutes, governs the enforcement of restrictive covenants. Under section 542.335, “[a] trial court may grant a temporary injunction if the complainant proves ‘(1) the likelihood of…
Continue reading ›In business litigation, Florida courts typically apply a flexibility theory of damages in fraud case. Gregg v. U.S. Industries, Inc., 887 F.2d 1462 (11th Cir. 1989). “The ‘flexibility’ theory of damages allows a plaintiff to choose either benefit-of-the-bargain or out-of-pocket damages in fraud cases[.]” Morgan Stanley & Co. Inc. v. Coleman (Parent) Holdings Inc., 955…
Continue reading ›Business litigation in Florida often involves claims for trade secret misappropriation under Florida’s Uniform Trade Secret Act (“FUTSA”) or the Defend Trade Secrets Act (“DTSA”). In business litigation, a business’ customer list may qualify for trade secret protection if the list is misappropriated through improper means. may occur during the employment or after an employees’…
Continue reading ›In Florida business litigation, a non-compete restriction may not exist solely as a tool to eliminate competition or merely to prevent an employee from working with a competing employer in any capacity. Crom, LLC v. Preload, LLC, 380 F. Supp. 3d 1190 (N.D. Fla. 2019). When a breach-of-contract action is based upon enforcement of a…
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