The Ohio Supreme Court Reverses Its Position on the Enforceability of Noncompete Agreements after a Merger

In a rare procedural move, the Ohio Supreme Court reconsidered and reversed its May 24, 2012 decision in Acordia of Ohio, L.L.C. v. Fishel, 2012-Ohio-2297 (“Fishel I”). At issue was the enforceability of restrictive covenants in employee noncompete agreements subsequent to a merger. In Fishel I, affirming the decisions of the lower courts, the Ohio Supreme Court held that all assets and property, including employment contracts and agreements, transferred through operation of law to the resulting company post-merger. The merged company, however, was precluded from enforcing its predecessor’s noncompete agreements because the agreements did not contain language that extends to others, such as the company’s “successors or assigns,” and the noncompete agreements had expired as to all the employees involved.