Explore the complexities of enforcing restrictive covenants in M&A transactions through a real-life legal battle. Gain insights from the Wilbur-Ellis Company LLC v. Jens case, emphasizing the crucial need for clarity in employment agreements regarding the survival of restrictive covenants.…
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A BADLY DRAFTED EMPLOYMENT AGREEMENT WITH SELLER’S OWNER ENDS UP IN COSTLY LITIGATION BETWEEN THE BUYER OF SELLER’S BUSINESS AND SELLER’S OWNER
The buyer hires the seller’s owner to be its vice president of sales, under a 5-year employment agreement, with the buyer’s right to terminate for cause. The agreement also gave the buyer the right to fire the seller’s owner at…
Posted in Problem with seller owner's competition, problems with seller's employees Tagged with: Appellate court decision, Buyer-seller disputes, Employment agreement, Employment contract, Employment termination, Litigation costs, M&A litigation, Non-competition covenant, Seller's owner, Termination for cause
FORMER SELLER EMPLOYEE’S LAWSUIT AGAINST BUYER NOT SUBJECT TO SELLER’S EMPLOYMENT AGREEMENT ARBITRATION PROVISION
Seller outside sales reps agreed to arbitration. Buyer purchased seller’s assets. Buyer hired sales reps who later sued buyer for overtime. Buyer can’t use seller arbitration provision to force sales reps into arbitration. M&A Stories February 15, 2023 Introduction In…
BUYER OF VETERINARY SURGICAL BUSINESS ASSETS ACQUIRES RESTRICTIVE COVENANTS FROM EMPLOYEE’S EMPLOYMENT AGREEMENT
The seller’s employee unsuccessfully argued that his restrictive covenants could not be assigned to the buyer without his consent. M&A Stories October 5, 2022 Introduction In the world of mergers and acquisitions, when a buyer purchases a business, they often…
Employee Raiding Lawsuit: Buyer vs. Seller Employee
Explore a real case where a buyer sued a seller’s key employee over employee departures after an acquisition. Learn about the legal implications and strategies to mitigate such risks in M&A deals. October 16, 2019 Introduction: In acquisitions, a company’s…
Posted in employment agreement, hiring seller's employees, key employees of target, nonsolicitation of employees and customers, stay bonus Tagged with: Acquisition risks, asset purchase agreement, Buyer vs. seller employee, Employee raiding lawsuit, Employment agreement, Fiduciary duties, Key employee departure, M&A legal case, M&A litigation, pied piper rule, Risk mitigation strategy
Employment Contract Leads to Arbitration Dispute in M&A Deal
Explore a case study of M&A gone awry due to employment contracts with arbitration clauses. Learn key takeaways for smoother transactions. M&A Stories March 8, 2019 Introduction: In the world of M&A, buyers often want the previous owners to stick…
Court Deems Non-Compete in M&A Employment Agreement Unenforceable
Explore a recent M&A case where a court ruled a non-compete clause in an employment agreement unenforceable. Delve into key details, including the background, agreements, termination, legal dispute, court’s decision, severance dispute, and trade secret allegations. M&A Stories September 17,…
Posted in covenant not to compete, customer list, trade secret misappropriation Tagged with: asset purchase agreement, Business acquisition, business expansion, Buyer-Seller Relations, case reference, contract disputes, Court decision, Court ruling, Employment agreement, Employment law, Legal dispute, legal implications, M&A Case, M&A legal blog, Minnesota law, Non-compete Clause, non-competes in M&A, Riddle v. Geckobyte.com Inc., severance dispute, termination, trade secret allegations, trade secrets, unreasonable customer scope, unreasonable term
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