Tag Archives: consideration

Minnesota Court Of Appeals Reaffirms That A Non-Compete Must Be Part Of A Job Offer To A Prospective Employee

Last month, this Blog highlighted a Minnesota decision evaluating the consideration required for non-compete agreements entered into after the commencement of employment.  As that decision held, such agreements must be supported by valuable consideration over and above continued employment. This month, in Safety Center, Inc. v. Stier, Case No. A17-0360 (Minn. App., Nov. 6, 2017), the … Continue Reading

Clear as Mud: Illinois Courts Continue to Grapple With The “Adequacy” Of Consideration for Non-Compete Agreements

It is axiomatic that a contract requires consideration to be binding. Ordinarily, courts only inquire into the existence, but not the “adequacy,” of consideration.  Illinois courts, however, also scrutinize the adequacy of consideration when it comes to determining whether restrictive covenant agreements qualify as an enforceable contract.  Absent adequate consideration for the restrictive covenant, there … Continue Reading

Continued Employment Isn’t Always Sufficient – Minnesota Requires Additional Consideration For Non-Compete With Current Employee

The Minnesota federal district court recently refused to enforce a non-compete agreement, in part, because the employer failed to establish that the agreement was supported by valuable consideration.  The decision, issued on October 6, 2017 in Mid-America Business Systems, v. Sanderson et. al., Case No. 17-3876, serves as an important reminder that, in Minnesota, there … Continue Reading

Four Non-Compete and Confidentiality Agreement Issues to Watch in 2016

Jackson Lewis has prepared an end-of-the-year review of four non-compete and confidentiality issues to watch in 2016 on its website. Clifford R. Atlas, co-chair of the firm’s non-compete and unfair competition practice group, and attorney Puja Gupta from the firm’s Baltimore office, identify four developments to keep an eye on next year: 1. Enforceability of choice of … Continue Reading

Consideration Required to Bind Existing Employees to Noncompetes, Pennsylvania Supreme Court Holds

The Pennsylvania Supreme Court has ruled that a non-compete signed during the course of employment, without additional consideration, is not enforceable even though the agreement stated that the parties “intend to be legally bound.” Socko v. Mid-Atlantic Systems of CPA, Inc. Douglas G. Smith, Melissa L. Evans and David E. Renner from our Pittsburgh office … Continue Reading

Some Clarity to What is Sufficient Consideration for Non-Competes in Illinois

Since the much-discussed Fifield case from the Illinois appellate court two years ago, all that could be said with confidence was that, unless someone was employed for at least two years after signing a restrictive covenant agreement, its enforceability was highly questionable. Practitioners in Illinois have been recommending that employers provide consideration in addition to … Continue Reading

Wisconsin Non-Compete Waters Just Got Muddier

On April 30, 2015, the Wisconsin Supreme Court issued its long-awaited decision in Runzheimer Int’l, Ltd. v. Friedlen, settling a dispute in Wisconsin over whether continued employment alone was sufficient to bind an employee to a non-compete agreement. The case involved an important, if nuanced, distinction between (a) whether there is a legal “agreement” in … Continue Reading

Kentucky High Court Nixes Non-Compete Supported Only By Continued Employment

The Kentucky Supreme Court has held that continued employment alone is not valid consideration for non-compete agreements.  In Charles T. Creech, Inc. v. Brown, 2014 Ky. LEXIS 233 (Ky. 2014), Donald E. Brown was employed by Charles T. Creech, Inc. for over 18 years before he was asked to sign a non-compete agreement in 2006. When … Continue Reading

Pennsylvania Superior Court Holds Continued Employment Not Sufficient Consideration for Non-Compete

In a case of “first impression”, The Superior Court of Pennsylvania has ruled that a restrictive covenant entered into after employment has already commenced is unenforceable if not supported by separate valuable consideration.  Socko v. Mid-Atlantic Systems of CPA, Inc., No. 1223 MDA 2013. The plaintiff in the case, David Socko, worked for Mid-Atlantic, a … Continue Reading

Noncompete Case Certified to Wisconsin Supreme Court on Issue of Consideration

The Wisconsin Court of Appeals has asked the Wisconsin Supreme Court for “guidance” as to whether additional consideration is required to support a covenant not to compete entered into during an at-will employment relationship.  The case, Runzheimer International, LTD v. Friedlen, involves an action by Runzheimer International, Ltd to enforce a non-compete agreement signed by David … Continue Reading

Should a Non-Compete be Signed Before or After Employment Begins? Answer: It Depends

The variation among states when it comes to non-compete law is a source of frustration for many employers.  And sometimes, similar facts can lead to opposite results depending on the jurisdiction.  A recent decision from the Southern District of Alabama, holding that a non-compete can only be signed after employment begins, shows how Alabama law … Continue Reading
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