Tag Archives: noncompete attorney

Four Take-Aways from an Employer’s Misuse of Overly Broad Noncompete Agreements

Using a broad brush to draft noncompete agreements that are applied universally to a company’s workforce is increasingly coming under fire. And this exposes companies to unnecessary litigation risks, as well as legal fees associated with enforcement costs. Employer Abuse of Noncompete Restrictions A recent example of involves Law360 and its settlement with the New … Continue Reading

Non-Solicitation Restrictions – A Valuable Tool for Protecting Your Company’s Customer Relationships

When it comes to post employment restrictions, non-compete agreements often get all the attention. In fact, such restrictions are a frequent subject of discussion on our law firm’s blog (Noncompete Restrictions: The First Line of Defense for Protecting the Company from Unfair Competition). However, as explained below, a carefully drafted non-solicitation provision should be in … Continue Reading

Noncompete Restrictions: The First Line of Defense for Protecting the Company from Unfair Competition

Business involves competition. But not all competition is lawful. Two former employees found this out the hard way after a judge determined on May 22, 2015 that they had wrongfully started a competing business while they continued to work for their employer along with misappropriating trade secrets and engaging in other wrongful acts (Nedschroef Detroit … Continue Reading

Michigan Court Orders Former Employee to Give Up Company, Move it, or Shut it Down After Violating Noncompete Agreement

Not many people would jump out of a plane and then worry about figuring out what to do about a parachute on the way down. But often times individuals take that approach when it comes to starting a new business or taking a job after having signed a non-compete agreement. And that lack of planning can … Continue Reading

The Foundation of Michigan Non-compete Law

Crain’s Detroit, by Dustin Walsh, reported last week that this year marks the 30 year anniversary of arguably the most significant Michigan court opinion concerning non-compete agreements. See “30 Years Later, A Noncompete Ruling has Been Forged into Law.” The case referenced in this article comes from a January 17, 1985 Michigan Supreme Court decision … Continue Reading

Common Mistakes that Derail Enforcement of a Noncompete Agreement

Our law firm was recently hired to represent clients – former employees – being sued for allegedly violating a noncompete agreement, trade secret misappropriation, and other business related claims. As is typical with these sorts of cases, the Plaintiff, the former employer, was seeking injunctive relief in the form of a temporary restraining order (TRO) … Continue Reading

Is Your Non-compete Agreement Enforceable? Not Without a “Reasonable Competitive Interest”

“Sticking feathers up your butt, does not make you a chicken.“ Tyler Durden, Fight Club Under Michigan law, one required element for having an enforceable non-compete agreement is a “reasonable competitive business interest.” But, like the chicken quote, business owners can’t expect to just stick the phrase “reasonable competitive business interest” into an employee agreement … Continue Reading

Enforceable Noncompete Agreement Key to $2 Million Judgment Against Former Employee

A recent Michigan trial court decision from the Oakland County Circuit Court illustrates the significance that noncompete agreements can have for employers and individuals who sign such agreements.  Specifically, Crain’s Detroit Business reported that an Oakland County Circuit court entered a judgment in excess of $2 million against Matt Prentice, a former employee and a well-known Metro … Continue Reading

The Challenge of Balancing Noncompete Agreements with Business Growth

In a previous post (Noncompete Agreements – A Hurdle to Employment and Innovation?), we discussed research that suggested noncompete agreements hinder innovation. Expanding on why innovation is hindered, in any context in which a noncompete agreement is entered into e.g., an employment relationship, a founder whose start-up is being acquired, or an owner selling his or her … Continue Reading

Enforceability of a Noncompete Agreement will Often Depend Upon Context.

It may sound odd for a noncompete attorney to say this, but when it comes to enforcing a non-compete restriction, the applicable law is often less important than the context in which the noncompete restriction arises. To better understand this point, consider that noncompete restrictions, sometimes referred to as covenants not to compete, often arise … Continue Reading

Doubting Attorney Google – Relying on Free Legal Search Results Can be Dangerous Thing

A little bit of knowledge can be a dangerous thing, especially when legal issues are involved. This truism makes the Internet a virtual minefield for the unwary looking for “free legal advice,” which often happens in the area of post employment restrictions and noncompete agreements. As discussed below, however, a noncompete lawsuit arising from incomplete … Continue Reading
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