Restrictive Covenants

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That Delaware choice of law provision might not save your non-compete, at least when California is involved

Last week, the Delaware Chancery Court in Ascension Insurance Holdings, LLC v. Underwood refused to grant injunctive relief to a Delaware company seeking to enforce a non-compete agreement against a California resident.  In that case, Mr. Underwood, a California resident, participated in a sale of business assets and their associated goodwill to the Delaware company.  … Continue Reading

No help from UK Courts for “absurd” non-competition covenant – over to you, employers

A strong message to employers from the Court of Appeal this week to check your restrictive covenants, but this time to do it properly.  None of that just casting an idle eye over the relevant page of your executive’s contracts – description of territory, tick; vague reference to competition, tick; not wholly fanciful restraint periods, … Continue Reading

Keeping it in the family – UK High Court imposes 12 month restraint on father and son team

Sometimes it must be tough being a High Court Judge, especially where you have to separate your distaste for a party’s ethics from the actual legal merits of his case.  So hats off to Mrs Justice Simler for combining in Croesus Financial Services Limited –v- Bradshaw & Bradshaw last week a fairly gleeful trashing of … Continue Reading

UK High Court imposes 12 months’ garden leave on “implausible and opportunistic” stockbroker

In one’s darker moments at work the prospect of 12 months’ compulsory paid leave sounds like the way to go.  In reality, the damage done to your name, skills and client connections could be very substantial.  How could the employer ever justify that requirement?   In JM Finn & Co Ltd v Holliday the High Court … Continue Reading

Webinar: Confidentiality and Restrictive Covenants Around the Globe – Hungary & Russia

In 2013, Squire Sanders is presenting a series of webinars focusing on confidentiality and restrictive covenants around the globe.  These webinars will provide participants with an understanding of the basic principles of restrictive covenants in different jurisdictions. On 14 November 2013 at 1pm GMT (5pm MSK, 2pm CET, 8am EST) our featured countries are Hungary … Continue Reading

Webinar: Confidentiality and Restrictive Covenants Around the Globe – Hong Kong & China

In 2013 Squire Sanders is presenting a series of webinars focusing on restrictive covenants around the globe.  These webinars will provide participants with an understanding of the basic principles of restrictive covenants in different jurisdictions. On 26 September 2013 at 9am BST (4pm CST & HKT) our featured countries are Hong Kong and China.  Nick … Continue Reading

Restrictive covenants in Australia – are independent contractors and employees treated equally?

No, a recent decision of the Federal Court of Australia has confirmed. In Informax International Pty Ltd v Clarius Group Ltd [2012] Clarius, a labour hire company, supplied the services of an IT contractor through her own company Informax, to Woolworths. The contract between Clarius and Informax restrained her from working directly for Woolworths for … Continue Reading

The Ohio Supreme Court Reinstates Ability To Automatically Transfer Employee Noncompete Agreements in a Merger

The Supreme Court of Ohio reconsidered and reversed in part its May 24, 2012 decision, Acordia of Ohio L.L.C. v. Fishel (Acordia I) [pdf], that a surviving company in a merger may not be able to enforce employees’ noncompete agreements if the agreements failed to contain an assignment clause. The Court issued a partial correction of … Continue Reading
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