Evidence Does Not Support Nationwide Injunction Against Competition by Former Employee

Confidentiality Clauses, Non-Compete, Restrictive Covenant, Employment Agreements, Nevada

The Nevada Supreme Court reversed an injunction entered by a district court, when it found the employer failed to put on sufficient evidence to justify an injunction enforcing a 50-state non-compete against a former employee. Here’s what happened. Continue reading

Court Compels Arbitration of Non-Compete Claim Based on Arbitration Clause in Separate Agreement

Non-Compete, Non-Solicit, Arbitration Provision, DTSA, Illinois

A federal court, in a non-competition setting, had to untangle the relationship between three separate agreements. One contained an arbitration provision but the others did not. Ultimately, the court determined that some parties had to arbitrate some claims but that others did not have to arbitrate.  Continue reading

Court Finds Two-State Non-Compete in Sale of Business Contract Void for Overbreadth

blue-pencil_cropSometimes a party to a contract gets greedy. As an example, sometimes a party seeks an onerous non-competition provision in a contract. Will a court enforce it? Will the court modify the agreement if it is too broad in some respect? Let’s see how this played out in a real case.  Continue reading

Illinois Court Examines What Constitutes Improper “Solicitation” Of Customers

Non-solicit, Employment Agreement, Quality Transportation Services, Thompson Trucking, Illinois

Although many restrictive covenants prohibit solicitation, there is comparatively little case law discussing in detail what “solicitation” means. A new Illinois Appellate Court decision sheds some light on the meaning of this key term. 

Quality Transportation Services, Inc. v. Thompson Trucking, Inc., 2017 IL App (3d) 160761 involved a contract dispute arising from the language of a transportation brokerage agreement. Continue reading