Total Articles: 5
Noncompete News: Minnesota Court Refuses to Create Non-compete Agreement Where None Exists, Denies Temporary Restraining Order.
A Minnesota court recently issued a decision that provides several good practice pointers for employers who wish to protect their proprietary relationships and information, or who wish to retain individuals who may have had access to such information while employed elsewhere.
Noncompete News: Employer Bound By New Employees’ Prior Agreement To Litigate Noncompete Claims In State Court.
As a basic rule of contract law, an entity normally cannot be bound by a contract to which it is not a party. In a recent Minnesota noncompete case, however, the federal district court invoked a rare exception to that rule to conclude that a company was bound by its new employees’ prior agreement that any lawsuit with their former employer had to be litigated in state court.
The Risks of Hiring Someone Bound by a Noncompetition Agreement.
You are about to hire a new employee when you learn that she signed a noncompetition agreement with her current employer. "No problem," you think, "courts never enforce those things. Besides, even if a court does enforce the noncompetition agreement, it will not affect me as the new employer because I did not sign the agreement."
Assignment Clauses in Noncompetition Agreements.
A federal court decision highlights the importance of including assignment clauses in noncompetition agreements.
the risks of hiring someone bound by a noncompetition agreement.
Discusses Kallok v. Medtronic, Inc., C2-96-1598 (Minn. January 15, 1998), in which the court held that a third party's interference with an employer's valid noncompete employment agreement is a tort for which the employer may recover damages and an employer may recover attorney fees for such tortious conduct.
