Disclaimer: Every case is unique and different. The outcome of every case depends on a variety of factors, including the facts, parties, issues, jurisdiction, etc. Although Frith Law Firm was successful in these cases, we cannot guarantee or predict a similar result on any future case undertaken by our firm.
Non-Compete held to be unreasonable and unenforceable by Virginia Arbitrator:
Our client, a successful recruiter, (think head-hunter) was sued in the spring of 2008 for over $300,000 in alleged damages by her prior employer. The employer alleged she breached her contract and non-compete when she started her own recruiting business within a 50 mile radius of her old office. In addition, it was alleged she misappropriated trade secret information and proprietary information.
As the contract required arbitration, the case was heard and decided by an arbitrator rather than the local circuit court. The contract was held to be an unreasonable restriction on our client's right to make a living as well as being overly broad and not limited to protect the employer's legitimate business interest. Lastly, the Arbitrator held the franchise owner failed to provide specific proof of financial loss or damages.
Defendant employee was able to keep working at her new business and did not pay her prior employer one cent.
Non-Compete held to be unreasonable and unenforceable by Virginia Circuit Court:
On September 28, 2008, Judge Grubbs of the Floyd County Circuit Court, held that a five year non-compete agreement was an unreasonable restriction on employee's right to earn a living. Although the Court did not rule whether the 90 mile geographic scope was reasonable, the Court held the employer / Plaintiff did fail to meet his burden of proof. Without any proof that five years was necessary to protect the employer's business interest, the Court struck down the agreement as unreasonable and under Virginia law, unenforceable. Ridgerunner ,LLC v. Pace, Floyd Co. CL08-07-00 (2008).
Breach of Contract, Tortious Interference Claim, Conspiracy and Trade Secret Act case settled:
October 2009. Sometimes a win for a client, means having a lawsuit dropped or a settlement reached. Dan and Lauren defended a 200 paragraph ten count lawsuit filed in Northern Virginia on behalf of an ex-employee. The lawsuit sought hundreds of thousands of dollars in damages and alleged intentional acts were committed by the employee to damage the reputation of his prior company.
Not only is our client satisfied with the result, but he was able to participate in the terms of settlement rather than have a local jury decide if he was liable. Terms of settlement are confidential by agreement.
If you have a potential Non-Compete or Employment Litigation Case and you would like our firm to assist with either evaluation of the contract or litigation, please call, email or complete our evaluation form here.