There has long been a debate about whether non-competes stifle the formation of new tech companies and inhibit the growth of a region’s economy.
This debate has been particularly heated in New England where several prominent members of the venture capital community
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Violating a Court Order barring competition
By Dan Warden
A recent decision from the Third Circuit illustrates the price an employee can pay for violating a temporary restraining order precluding competition with a former employer.
In the fall of 2006, a federal district court in Pennsylvania granted the employer’s motion…
Can an employer fire an existing employee who refuses to sign a non-compete?
By Dan Warden
In recent years, employees in several states have attempted to assert claims for wrongful discharge when their employment was terminated after they refused to sign non-compete agreements. Typically, these employees have argued that their termination for refusing to sign the…
Seller’s Flagrant Disregard of Non-compete Leads to Damage Award
By Dan Warden
Perhaps because they are more familiar with the law in other states or perhaps because they don’t think that non-competes are “fair”, many non-lawyers in Colorado believe that non-competes are rarely enforced. Or they think that they can take a risk…
California Reaffirms Rule Precluding Enforcement of Non-competes
By Dan Warden
In a long awaited, but unsurprising, decision, the California Supreme Court in Raymond Edward II v. Arthur Andersen LLP has rejected the use of most non-compete agreements. Arthur Andersen had argued that Section 16600 of the California Civil Code, which generally voids any…
Physician Non-Competes in Colorado
By Dan Warden
A recent Kansas case highlights the unique rules in Colorado governing non-competes for physicians.
Kansas, like many other states, allows reasonable non-competes to be enforced against physicians. In Wichita Clinic v. Louis, a physician challenged the enforcement of a non-compete…
Colorado Court of Appeals Enforces Non-Compete Against Purchaser of Franchise
By Dan Warden
In the latest decision involving a non-compete in a franchise agreement, the Colorado Court of Appeals ruled on May 15, 2008 that a franchisor may enforce a non-compete when the non-compete arises from the purchase of an existing franchise.
In…
Non-compete in Franchise Agreement Enforced Against Franchisee
By Dan Warden
In a brief, direct decision, Judge Miller, a federal district judge in Colorado, recently granted a franchisor’s motion for preliminary injunction in Dry Cleaning To Your Door, Inc. v. Waltham Ltd. Defendants had signed a franchise license agreement with a…
Non-Compete Litigation Continues to Increase
By Dan Warden
Strong evidence suggests that litigation over non-competes, or covenants not to compete, has surged in the last several years. Most recently PC World in its June 20 issue lamented that the aggressive enforcement of non-competes had stifled tech start up development…