Non-Compete Agreement John C Lindley III

Six Things Every Lawyer Should Know When Drafting a Non-Compete Agreement in North Carolina

          When advising clients and drafting employment contracts with non-compete clauses, there are several things every lawyer should keep in mind.  The general rule is courts will enforce non-compete clauses to the extent they are reasonably necessary to protect legitimate business interests.[1]  In North Carolina, they must be (1) in writing Read More

employment agreement

North Carolina Business Court: Employment Agreements Automatically Terminate Upon the Sale of a Company

          A recent decision by the North Carolina Business Court held that an employment agreement automatically terminates upon the asset sale of one company to another, despite continued employment with the purchasing company.[1]          In 2001, Andrew Lund executed an employment agreement with his then-employer, Southern Staircases of Read More

employment agreement

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 Read More

judges court gavel on a laptop computer

Eastern District of North Carolina Predicts the North Carolina Supreme Court Will Apply the Doctrine of Inevitable Disclosure “Under Certain Circumstances.”

            The Eastern District of North Carolina recently decided a case affirming that, while North Carolina courts have not yet adopted the doctrine of inevitable disclosure, North Carolina would adopt the doctrine under certain circumstances.[1]  Spirax Sarco, Inc., (“Spirax”), alleged a claim for, among other things, injunctive relief under the Read More

signing contract

NCBC: Fifty-Mile Customer Based Geographic Restriction Makes Non-Compete Agreement Unreasonable

           In August, the North Carolina Business Court (“NCBC”) determined a non-compete agreement was unreasonable because of its overly broad geographic restriction, and denied Plaintiff’s motion for preliminary injunction to prohibit a former employee from competing with it.[1]              In North Carolina, non-compete agreements are generally Read More

Termination-Fired

Fired for Discrimination Complaint: Wrongful Termination Suit Fails to Survive Motion to Dismiss

     The North Carolina Court of Appeals recently affirmed a trial court’s decision to grant a motion to dismiss a lawsuit when the Plaintiff, Lisa Green-Hayes (“Green-Hayes”) failed to properly state a claim for retaliatory wrongful termination.[1]  In her complaint, Green-Hayes alleged she was subjected to the “discriminatory employment practices and … attitude of Read More