Articles Posted in Non-Compete Agreements

Florida law requires that courts read non-competition covenants in favor of providing reasonable protection to a company’s legitimate business interest and prohibits courts from reading the non-competition covenant narrowly against the restraint. Anarkali Boutique, Inc. v. Ortiz, 104 So. 3d 1202 (Fla. 4th DCA 2012) provides an example of just how broadly Florida courts could…

Generally, under Florida statutory law, restrictive covenants, e.g., non-competition covenants, must be signed by the person against whom the covenant will be enforced. A restrictive covenant cannot be enforced against an individual who did not sign the restrictive covenant. In Winn-Dixie Stores, Inc. v. Dolgencorp, Inc., 964 So. 2d 261 (Fla. 4th DCA 2007), Winn-Dixie…

Florida law tends to favor enforcement of non-competition covenants. Under Florida law, non-competition covenants are enforceable if they protect one or more legitimate business interests and if they are reasonable in time, area, and line of business. In fact, Florida law explicitly forbids courts from considering “any individualized economic or other hardship that might be…

Under Florida law, non-competition covenants are generally enforceable if they protect one or more legitimate business interest. However, certain acts by the employer could defeat the enforceability of the non-competition covenant. Under contract law, a party’s material breach of a contract will render the entire contract unenforceable against the other party. In other words, if…

Parties to contracts with non-competition covenants should take note of the effects that a stock purchase, merger, or asset purchase has on the enforceability of those non-competition covenants. A company’s ability to enforce a non-competition covenant can be determined by several factors including how the non-competition covenant was acquired by the company seeking to enforce…

To protect trade secrets and other business interests, businesses often enter into non-competition contracts with employees. In Florida, the duration of non-competition covenants is subject to different “reasonableness” presumptions set forth by statute. Florida law distinguishes non-competition covenants that, on the one hand, are meant to protect trade secrets from those that, on the other…

Businesses enter into non-competition and confidentiality agreements with employees to protect trade secrets, which are usually in the form of specific practices, processes, designs, or a compilation of information. The agreements are designed to deter misappropriation of the trade secrets after the employment relationship has ended. The most frequent issue in non-competition or confidentiality agreement…

DePuy Orthopaedics, Inc. v. Waxman Under common law, non-compete clauses and agreements were generally rendered void and unenforceable as contrary to public policy and as unlawful restraints on trade. However, over the past several decades, the Florida Legislature has begun to loosen the reins on employers in allowing non-compete agreements to stand. Although earlier state…

Florida’s Fourth District Court of Appeal reversed, in part, a Broward Circuit Court temporary injunction involving a non-competition covenant between business competitors. 4UORTHO, LLC v. Practice partners, Inc., Physician Wellness Products, LLC, et. al., 18 So.3d 41, 43-44 (Fla. 4th DCA 2009). The injunction prohibited “soliciting any practices which are current or prospective clients” of…

The recent Third District Court of Appeal opinion in Reliance Wholesale, Inc. v. Godfrey, 2010 Fla.App.LEXIS 19459 at * 9 (Fla. 3rd DCA December 22, 2010), held that where a non-competition covenant is drafted as an “independent covenant,” as distinguished from a “dependent covenant,” a material breach defense premised on the employer’s alleged failure to…