Non-Competition Covenants

Subscribe to Non-Competition Covenants via RSS

Edwards v. Arthur Andersen LLP, 44 Cal. 4th 937 (2008)

CPA Raymond Edwards II was hired in 1997 as a tax manager for the Los Angeles office of the now defunct accounting firm Arthur Andersen LLP (“Andersen”). As a condition of his employment, Edwards was required to execute a noncompetition agreement that prohibited his (1) “perform[ing] professional services” for 18 months post-termination on behalf…

Alliant Ins. Services, Inc. v. Gaddy, 159 Cal. App. 4th 1292 (2008)

Alliant Insurance Services purchased a competing insurance brokerage company from G. Scott Gaddy for $4.1 million and then employed him under a senior management agreement. Both the purchase and employment agreements contained covenants whereby Gaddy agreed not to compete with Alliant or to solicit Alliant’s or Gaddy’s clients for three years following…

Computer Task Group, Inc. v. Brotby, 364 F.3d 1112 (9th Cir. 2004)

Computer Task Group (CTG) sued William Brotby for breach of a non-solicitation/non-disclosure agreement that he signed while he was working as an information technologies consultant. CTG succeeded in obtaining an injunction prohibiting Brotby from working for Alyeska Pipeline Service Company, one of CTG’s clients. During the discovery phase of the lawsuit, Brotby…

Thompson v. Impaxx, Inc., 113 Cal. App. 4th 1425 (2003)

David Thompson’s employment was terminated after he refused to sign a customer non-solicitation agreement that his employer, Impaxx, required him to sign. The covenant in question stated that “[f]or a period of one year following the termination of employment, I will not call on, solicit, or take away any of [my employer’s] customers or…

Advanced Bionics Corp. v. Medtronic, Inc., 29 Cal. 4th 697 (2002)

Mark Stultz was employed in Minnesota as a senior product specialist for Medtronic, a manufacturer of implantable neurostimulation devices, before resigning his employment and going to work for Advanced Bionics Corporation, one of Medtronic’s competitors located in Sylmar, California. Upon accepting employment with Medtronic, Stultz signed a non-competition agreement, which contained a choice-of-law…

Bennett v. Medtronic, Inc., 285 F.3d 801 (9th Cir. 2002)

Medtronic, Inc. sued three of its former California employees and their new employer, NuVasive, in Tennessee following the employees’ resignation from Medtronic and acceptance of employment with NuVasive, one of Medtronic’s competitors in the business of designing and manufacturing spinal surgery devices. Among other things, Medtronic sought to enforce a non-competition agreement the employees…