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...and in the "Dumb Question Department"... - Scott Perry/PA
7/11/2005 6:11:00 PM (2679 views)
Re: ...and in the "Dumb Question Department"... - Kevin Ahern/CT
7/11/2005 6:53:15 PM (3576 views)
Re: ...and in the "Dumb Question Department"... - Scott Perry/PA
7/11/2005 10:06:44 PM (3474 views)
Re: ...and in the "Dumb Question Department"... - Deborah Manion/VA
7/12/2005 10:04:28 AM (3498 views)
Re: ...and in the "Dumb Question Department"... - Scott Perry/PA
7/12/2005 5:01:16 PM (3470 views)
Re: ...and in the "Dumb Question Department"... - Deborah Manion/VA
7/12/2005 5:06:28 PM (3417 views)
Re: ...and in the "Dumb Question Department"... - Scott Perry/PA
7/12/2005 7:29:18 PM (3327 views)
Re: ...and in the "Dumb Question Department"... - Douglas Gallant/OH
7/12/2005 6:46:10 PM (3441 views)
Re: ...and in the "Dumb Question Department"... - Jonathan Figliuolo/NJ
7/14/2005 12:02:52 PM (3409 views)
Re: ...and in the "Dumb Question Department"... - Shannon Blatt/VA
7/14/2005 3:47:12 PM (3399 views)
Re: ...and in the "Dumb Question Department"... - Ruth Seal/FL
7/16/2005 5:25:15 PM (3392 views)

Accusigning - Kevin Ahern/CT
7/11/2005 5:58:21 PM (2613 views)

QuickClose - Robert Franco/OH
7/11/2005 1:35:12 PM (3715 views)
Re: QuickClose - Kevin Ahern/CT
7/11/2005 2:02:05 PM (3495 views)
Re: QuickClose - Julie Jasiunas/WI
7/11/2005 7:02:46 PM (3565 views)
Re: QuickClose - Matthew DeLand/NY
7/12/2005 4:10:19 PM (3368 views)
Re: QuickClose - Robert Franco/OH
7/12/2005 5:41:06 PM (3420 views)
Re: QuickClose - Victoria Moate/NJ
8/9/2005 2:48:38 AM (3385 views)

A funny thing happened.... - SHARON YAHRAES/ID
7/10/2005 1:34:04 PM (2614 views)
Re: A funny thing happened.... - george Hubka/MI
7/10/2005 11:27:05 PM (3518 views)
Re: A funny thing happened.... - Lisa Ramsey/TX
7/11/2005 10:42:48 AM (3471 views)

More Security Issues - Shannon Blatt/VA
7/9/2005 10:47:23 AM (2647 views)
Re: More Security Issues - Shannon Blatt/VA
7/9/2005 10:52:18 AM (3628 views)
Re: More Security Issues - Julie Jasiunas/WI
7/9/2005 10:56:57 AM (3552 views)
Re: More Security Issues - Julie Jasiunas/WI
7/9/2005 11:08:55 AM (5812 views)
Re: More Security Issues - Scott Perry/PA
7/9/2005 11:51:02 AM (3436 views)
Re: More Security Issues - Shannon Blatt/VA
7/9/2005 7:17:57 PM (3368 views)
Re: More Security Issues - george Hubka/MI
7/9/2005 8:36:47 PM (3459 views)
Re: More Security Issues - Lisa Ramsey/TX
7/9/2005 11:00:28 PM (3401 views)
Re: More Security Issues - Kevin Ahern/CT
7/9/2005 8:56:48 PM (3487 views)
Re: More Security Issues - george Hubka/MI
7/9/2005 9:00:21 PM (3283 views)




E&O insurance continued... - Loretta Reed/MD
7/9/2005 10:18:53 AM (2571 views)
Re: E&O insurance continued... - Julie Jasiunas/WI
7/9/2005 10:46:50 AM (3561 views)
Re: E&O insurance continued... - Lisa Ramsey/TX
7/9/2005 11:26:57 AM (3548 views)
Re: E&O insurance continued... - Julie Jasiunas/WI
7/9/2005 12:19:54 PM (3539 views)
Re: E&O insurance continued... - Shannon Blatt/VA
7/9/2005 7:19:40 PM (3712 views)
Re: E&O insurance continued... - george Hubka/MI
7/9/2005 8:41:35 PM (3643 views)
Re: E&O insurance continued... - Lisa Ramsey/TX
7/9/2005 10:58:14 PM (3448 views)
Re: E&O insurance continued... - george Hubka/MI
7/10/2005 11:29:10 PM (3474 views)
Re: E&O insurance continued... - Marsha Fox/AL
7/11/2005 8:20:50 AM (3822 views)
Re: E&O insurance continued... - Loretta Reed/MD
7/12/2005 8:32:28 AM (3543 views)
Re: E&O insurance continued... - Donna Grady/NC
7/16/2005 10:56:00 PM (3418 views)

Former employees disclosures - SHARON YAHRAES/ID
7/9/2005 2:30:28 AM (2788 views)
Re: Former employees disclosures - Kevin Ahern/CT
7/9/2005 6:58:08 AM (3517 views)

Non compete clauses (more properly called restrictive covenants) are equitable remedies (sometimes called extraordinary remedies).In Connecticut they are enforceable but difficult and expensive to enforce. There was a case here several years ago involving a local television personality that enforced a restrictive covenant to a limited degree. In states in which they are enforceable they are usually narrowly construed by the courts to effectuate their remedial purpose. This is because you are attempting to limit someone in their ability to earn a living.

The court will examine the restrictive covenant to make certain that it is reasonable in terms of the 1. scope of the activity you want to restrict, 2. the time period for which you wish to restrict the activity and 3. the size of the geographical area in which you want to restrict the activity (your marketing area).

If any one of the three is deemed to be unreasonable by the court, the covenant will not be enforced or in the alternative the court may enforce it to a lesser degree (smaller area, shorter time or more limited activity). It will not fully enforce the covenant to the extent that it seeks to limit the activity in areas beyond the plaintiff's marketing area, to the extent that the duration of the restriction is too long or to the extent that the activity to be restricted is broader than the type of business in which you are engaged.

I read a case a while ago in which an orthodontist had hired a young dentist to work for him subject to a restrictive covenant. After several years the dentist resigned, and opened his own practice (Not including orthodonture work) in the same area as the orthodontist. When the orthodontist sued to enforce restrictive covenant, the court ruled that the covenant was reasonable to the extent of the five county geographical which was the orthodontist's marketing area. It further held that the five year duration of the restrictive covenant was reasonable, but held that the scope of the activity sought to be restricted (all dentistry) was overly broad and unreasonable. The court elected to fashion a more limited remedy. It enforced the covenant to the extent that there was competition in the area of orthodonture only, but left the dentist free to practice other forms of dentistry.  

When you initiate a suit to enforce a restrictive covenant, the plaintiff is seeking injunctive relief from the court. An injunction is a court order enforcing the restrictive covenant. The plaintiff usually seeks three court orders in the course of the suit. He normally seeks a short restraining order of several weeks duration which temporarily enforces the restrictive covenant until a court hearing can be scheduled to have a temporary injunction issued. The temporary injunction , if granted by the court, enforces the covenant for the duration of the case. That could be several years before it comes to trial depending on the court's backlogue of cases. Therefore, in some states it is customary for the court to require the plaintiff to post a bond to compensate the defendant for his lost wages during the period of the temporary injunction in the event that that plaintiff loses his case. If the plaintiff is successful, the court will issue a permanent injunction enforcing the restrictive covenant.

If your state has a trade secrets statute, you may want to have your attorney redraft your employment contracts to define sensitive information (i.e. identities of clients, your pricing structure, etc.) as a trade secret. You could then seek enforcement of the remedies provided by the statute. This provision could be contained in your employment contracts in addition to the restrictive covenants. It would be an additional remedy, and depending upon the state in which you reside it may be easier to enforce than the restrictive covenant. 

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Re: Former employees disclosures - SHARON YAHRAES/ID
7/9/2005 12:46:36 PM (3658 views)
Re: Former employees disclosures - Kevin Ahern/CT
7/9/2005 4:18:22 PM (3648 views)
Re: Former employees disclosures - Lisa Ramsey/TX
7/9/2005 11:34:09 AM (3698 views)
Re: Former employees disclosures - SHARON YAHRAES/ID
7/9/2005 12:43:23 PM (3650 views)
Re: Former employees disclosures - Douglas Gallant/OH
7/16/2005 4:43:54 PM (3578 views)
Re: Former employees disclosures - Lisa Ramsey/TX
7/17/2005 1:38:54 PM (3638 views)
Re: Former employees disclosures - SHARON YAHRAES/ID
7/17/2005 11:04:32 PM (3413 views)
Re: Former employees disclosures - Robert Franco/OH
7/9/2005 1:13:29 PM (3638 views)
Re: Former employees disclosures - Shannon Blatt/VA
7/9/2005 7:28:02 PM (3699 views)
Re: Former employees disclosures - Kevin Ahern/CT
7/9/2005 8:52:53 PM (3629 views)
Re: Former employee disclosures - Galavantin Avatar/CA
7/15/2005 2:10:03 PM (3604 views)

Public Note of Thanks - Helene Gonzalez/GA
7/8/2005 10:23:42 PM (3529 views)
Re: Public Note of Thanks - Robert Franco/OH
7/9/2005 11:13:50 AM (3379 views)
Re: Public Note of Thanks - Lisa Ramsey/TX
7/9/2005 11:17:24 AM (3403 views)
Re: Public Note of Thanks - Helene/GA
7/13/2005 11:39:49 PM (3460 views)

abstracting in LA - Michael Frank/TX
7/8/2005 10:13:51 AM (2520 views)
Re: abstracting in LA - Michael Frank/TX
7/8/2005 4:26:00 PM (3375 views)

So, You Want To Out-Source Overseas??? - Jay Duncan/MO
7/7/2005 12:49:46 PM (3627 views)
Re: So, You Want To Out-Source Overseas??? - Jay Duncan/MO
7/7/2005 4:11:52 PM (5485 views)
Re: So, You Want To Out-Source Overseas??? - David Bloys/TX
7/10/2005 10:48:55 PM (6417 views)

Nationwide Title Clearing - Danielle Nelson/WI
7/7/2005 10:27:44 AM (2743 views)
Re: Nationwide Title Clearing - Never Again!!! - Jay Duncan/MO
7/7/2005 12:47:25 PM (4028 views)
Re: Nationwide Title Clearing - Never Again!!! - LAWANDA MCMILLIAN/AR
7/7/2005 4:02:56 PM (3790 views)
Re: Nationwide Title Clearing - Never Again!!! - george Hubka/MI
7/7/2005 11:06:30 PM (3602 views)
Re: Nationwide Title Clearing - Never Again!!! - LAWANDA MCMILLIAN/AR
7/8/2005 8:18:14 AM (3596 views)
Re: Nationwide Title Clearing - Never Again!!! - Bannon Lucas/FL
7/15/2005 11:30:07 AM (3656 views)
Re: Nationwide Title Clearing - Never Again!!! - Robert Franco/OH
7/15/2005 12:41:55 PM (3640 views)
Re: Nationwide Title Clearing - Never Again!!! - Lisa Ramsey/TX
7/16/2005 2:31:48 PM (3446 views)
Re: Nationwide Title Clearing - Never Again!!! - Jay Duncan/MO
7/16/2005 11:02:26 PM (3498 views)
Re: Nationwide Title Clearing - Never Again!!! - Jay Duncan/MO
7/19/2005 10:45:01 AM (3479 views)
Re: Nationwide Title Clearing - Never Again!!! - Bannon Lucas/FL
7/20/2005 4:35:33 PM (3685 views)

Abstractor Software... - Robert Franco/OH
7/6/2005 5:03:56 PM (2077 views)

Texas Courthouses - Lisa Ramsey/TX
7/2/2005 1:06:43 PM (2102 views)

Women in business resource - J Nisonger/CA
7/1/2005 11:55:16 AM (3102 views)

Searcher Liability Question - Larry Crooks/OH
6/29/2005 4:02:29 PM (2667 views)
Re: Searcher Liability Question - Kevin Ahern/CT
6/29/2005 5:03:27 PM (3568 views)
Re: Searcher Liability Question - Robert Franco/OH
6/29/2005 7:17:46 PM (3801 views)
Re: Searcher Liability Question - Lisa Ramsey/TX
6/29/2005 11:39:52 PM (3861 views)
Re: Searcher Liability Question - Larry Crooks/OH
6/30/2005 6:49:16 AM (3680 views)
Re: Searcher Liability Question - Kevin Ahern/CT
6/30/2005 8:41:48 AM (3925 views)
Re: Searcher Liability Question - Robert Franco/OH
6/30/2005 10:05:58 AM (3813 views)
Re: Searcher Liability Question - Larry Crooks/OH
6/30/2005 12:37:48 PM (3694 views)
Re: Searcher Liability Question - Regina Engebritson Engebritson/MN
8/10/2005 8:33:33 PM (3539 views)


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