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Non-Compete Agreements: Strategies

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Orlando, Florida Non-Compete
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REPRESENTING THE EMPLOYEE IN RESTRICTIVE COVENANT
DISPUTES

Probably the most important strategy decision to employ when faced with an application for injunctive relief is to take the offensive immediately. The employee must attempt to turn the tables on the employer in order to gain a tactical advantage. Therefore, an employee who may be faced with the threat of imminent litigation through the filing of an injunction for alleged breach of a restrictive covenant may wish to consider a preemptive strike: filing a motion to dissolve or commencing a declaratory judgment action, which would seek a determination of the enforceability of the restrictive covenant and a declaration of its invalidity, and also may raise other related issues and claims. If a non-final appeal is necessary, it should be considered that in cases where there are no disputed factual matters at issue, the appellate court will review the injunction de novo. And, although the interpretation of a covenant not-to-compete is a matter of law to be resolved by a trial court, an appellate court is nevertheless empowered to undertake an independent assessment of the covenant's meaning. Thus, an appellate court is not restricted in its ability to reassess the meaning and effect of the parties' non-competition agreement and to reach a conclusion which differs from that of the trial court.

As the purpose of an injunction is to prevent irreparable harm, one such tactic is to show that the employer will not be irreparably harmed absent the injunction. However, where a plaintiff sufficiently demonstrates that a former employee is contacting its customers, the presumption of irreparable injury attaches.

In addition, one of the requirements for the issuance of an injunction is a showing that success on the merits is likely. In Cordis Corp. v. Prooslin, the court held that there was no abuse of discretion in denying a temporary injunction where the record showed doubt that the employer had the ability to succeed at trial. Accordingly, any available factual and legal arguments should be made which show that the claims have little, if any, chance of success. Furthermore, a showing that the former employer does not have a legitimate interest to protect and/or that the restrictive covenant does not reasonably protect that interest will go a long way toward casting doubt on the employer's right to an injunction.

It should be kept in mind that the ultimate goal is to declare the restrictive covenant invalid, and, if appropriate, to recover on the employee's counterclaims. Therefore, that individual must have "clean hands" and be prepared to show the Court that no improper actions were committed in connection with his or her former employment. Any arguably wrongful actions by the employee during the course of the litigation must be avoided at all costs.
 


CONCLUSION

An employee must contend with many concerns when faced with restrictive covenant litigation. Being cognizant of the time, expense and commitment required, the most prudent course is for the employee to consult with counsel early and work out a plan of action before he or she leaves the place of employment. In view of the high stakes involved, all defenses to injunctive relief should be investigated and vigorously pursued.

For a confidential consultation regarding potential employment dispute cases, contact the Law Office of N. James Turner, Esq., P.A. at (407) 422-6464


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