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Buyer did not terminate employment agreements with owners of selling accounting firm for cause

In November 2014, Buyer, an accounting firm in Plymouth, Indiana (about 27 miles south of South Bend, Indiana) acquired Seller, an accounting firm in South Bend, through an asset purchase agreement. At the closing Buyer entered into employment agreements with

Posted in covenant not to compete, employment agreement, for cause termination

Court says buyer of assets of business can enforce noncompetition agreement seller had with former employee

Seller, based in Billerica, Massachusetts (20 miles NNW of Boston) manufactured computer peripheral equipment. Former Seller Employee started working at Seller in 1982. He was promoted several times over the course of his employment, eventually becoming program manager in the

Posted in Assignment, assignment of contracts, covenant not to compete

Buyer of stock of title and escrow company can enforce noncompete and nonsolicitation provisions in target’s employment agreements

Target was a title and escrow company located in West Jordan, Utah (greater Salt Lake City area). Target’s Manager and Target’s COO/general counsel signed employment agreements with Target. Target’s Manager’s employment agreement, executed in August 2003, stated that she would

Posted in asset vs stock deal, covenant not to compete, nonsolicitation of employees and customers

Maryland court enforces boilerplate forum selection clause in confidentiality and noncompetition agreement against spouse and related companies of signatory

Buyer is a group of related Maryland companies founded in 1976 and has its world headquarters in Taneytown, Maryland (an hour NW drive from Baltimore). Buyer provides service and makes products in the commercial HVAC, industrial process, power, and industrial

Posted in covenant not to compete, enforce against nonparty, forum selection clause, nondisclosure agreement

Non-compete given by business seller’s owner to business buyer in employment agreement held by court to be unenforceable

Seller’s owner is a computer programmer who operated Seller, a Portland, Maine based business that provided data and consulting services for the tire and automotive industry. In November 2010, Buyer contacted Seller’s owner about purchasing Seller. Buyer is based in

Posted in covenant not to compete, customer list, trade secret misappropriation

South Carolina Supreme Court enforces business seller’s noncompetition area that is significantly larger than seller’s former market area

Founded in the 1980s, Lexington, South Carolina based Seller, began its operations as a mortuary transport business; however, it eventually expanded to include the manufacturing and sale of body bags. In 2006, Seller decided to sell the mortuary transport portion

Posted in covenant not to compete, reformation, step-down provision

Texas court reduces geographic reach of noncompetition covenant given by seller of Hispanic grocery stores

Buyer owns two chains of grocery stores: La Michoacana and El Ahorro. In total, he owns 150 stores throughout Texas and Oklahoma. These grocery stores primarily target Hispanic customers. There were over 70 La Michoacana and El Ahorro stores in

Posted in covenant not to compete, reformation

Buyer can’t prevent the seller of a tax, accounting, and financial practice, from soliciting his old clients after expiration of noncompetition covenant term

On October 16, 2007, the seller sold his tax preparation, accounting, and financial management practice, including his client list, trade name, and an office lease in Hicksville (Long Island, New York) to the buyer. The purchase agreement provided that the

Posted in covenant not to compete

Court enforces a noncompetition covenant given by owner of the seller of a paper products and janitorial supply business

This is the story of a court ordering the owner of a seller of a business to comply with the noncompetition covenant given by the owner to the buyer. Non-relevant facts have been simplified to illustrate the lesson of this

Posted in covenant not to compete

Court awards buyer damages for seller’s breach of noncompetition covenant in 3D printing industry

The story in this case serves as a reminder to a seller of a business, that giving the buyer your covenant not to compete is a serious undertaking. Here is the background of the lawsuit as described by the judge:

Posted in covenant not to compete

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