By Dan Warden on Posted in DamagesAn award of over $72,000 in fees and costs against a former employee was affirmed by the February 17 Colorado Court of Appeals decision, Saturn Systems v. Delbert J. Militare. The decision demonstrates the risks presented by a fee shifting provision in a noncompete agreement. After an employee had been terminated by Saturn, he used his relationship… Continue Reading
By Dan Warden on Posted in DamagesDamages may be awarded for breach of a non-compete agreement even if the agreement is modified after the breach occurs, according to the recent First Circuit decision in Astro-Med v. Nihon Kohden. In Astro-Med, the trial court modified the scope and range of the prohibited conduct set forth in the non-compete when it issued a preliminary injunction. Instead of… Continue Reading
By Dan Warden on Posted in DamagesProfits lost on specific orders are recoverable for breach of a non-compete agreement, according to the recent Tenth Circuit decision in Southwest Stainless v. Sappington. Oklahoma law was applied to determine that the non-compete was enforceable. As a result, the trial court’s reasoning about why the non-compete was enforceable has limited value for a case… Continue Reading
By Dan Warden on Posted in DamagesIn a November 2008 decision, TruGreen Companies v. Mower Brothers, the Utah Supreme Court ruled that lost profits is the appropriate measure of damages for breach of a contractual non-compete provision. In TrueGreen, TruGreen Companies had argued that an unjust enrichment or restitution measure of damages should be used. TruGreen sought to recover the economic… Continue Reading
By Dan Warden on Posted in DamagesA recent decision from the Third Circuit illustrates the price an employee can pay for violating a temporary restraining order precluding competition with a former employer. In the fall of 2006, a federal district court in Pennsylvania granted the employer’s motion for a temporary restraining order pending a hearing on the employer’s motion for preliminary injunction.… Continue Reading
