Covenant Not to Compete Found Invalid and Employee Keeps Job

Highlights:

In-depth research and extensive preparation keep an employer from paying any damages for hiring an employee away from a competitor.

Summary:

A company hired a key new employee from a competitor. However, the employee had signed a covenant not to compete with the first employer, meaning that he could not work for the new employer. The first employer sued the new employer and the employee in an attempt to keep the employee from working and to get damages from the company that hired him. The new company wanted very much to keep the employee, and the employee needed his job to support his family.

The new company came to CSH defense attorney Benton Toups for help. After he examined the covenant not to compete and finished extensive research of the law, he argued to a judge that specific language used in the covenant made it unenforceable. For two days, both sides presented witnesses, evidence, and arguments, and finally the judge agreed with Mr. Toups that the covenant was unenforceable. The employee was free to keep his job, and CSH’s client was free to keep its new employee.

Result/Implications:

Thanks to extensive preparation and careful research, CSH attorney Toups was able to help an employee keep his job and an employer keep a valuable employee.

Disclaimer: The outcome of a particular case cannot be predicated upon past results.