• Blog Post

    North Carolina Business Court Weighs in on Enforceability of Non-Compete and Confidentiality Agreements Post-Merger

               It is well-settled law that adequate consideration is required to create binding restrictive covenants such as non-compete agreements.  Generally, such agreements are entered at the start of an employment relationship, and the new employment itself constitutes consideration.  In North Carolina, continued employment following a merger of two companies does not satisfy the consideration requirement.  In a recent decision, the North Carolina Business Court (“NCBC”) confronted the very issue.[1]             In January 2012, AmeriGas Propane, Inc., a propane company that services over two million residential and commercial customers nationwide, merged with Shaw L.P. Gas. Ermon Coffey, an employee of Shaw, and…