Hanover County: Another Non-Compete Bites the Dust
Non-Compete Ruled Invalid – Too Broad
A somewhat recent case in Hanover County offers yet another example of a non-compete agreement that was declared to be invalid because it was too broad. The case is Specialty Marketing, Inc. v. Brunson Lawrence.
Lawrence worked as an account representative responsible for sales in North and South Carolina. His non-compete said he could not “own, manage, control, be employed by participate in, or be connected in any manner with the ownership, management, operation, or control, whether directly or indirectly, as an individual on his own account or as a partner, member, joint venture, sole proprietor, officer, director or shareholder of a corporation, firm, association or other entity, of any business competitive with Specialty in areas where Specialty has a market for its business.”
Judge Harris found the non-compete to be ambiguous, overbroad, and unenforceable.
This is another example for employers who use non-competes to draft them using reasonable terms of time, duration and scope. It’s also another example to employees who are asked to sign non-competes about the limitations of signing agreements that are too broad. If you are an employer and you’re contemplating using a non-compete you should ensure that the language in the agreement is consistent with the principles that Virginia’s Supreme Court and various Circuit Courts have established.
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