Million Dollar Verdict in Michigan for Violation of Non-Compete Agreement

As Reported in the Macomb Daily Newspaper (Mt. Clemens, MI)

Retired auto dealer awarded $3 million on violation of non-compete by his daughter.

This case demonstrates the presumption of validity of non-compete agreements in Michigan and that juries are willing to enforce and have potential to generate large verdicts.

Non-Compete Contract Basics: The Employer Perspective

A non-compete contract is an agreement signed by an employee or contractor where he/she agrees that they will not engage in certain employment within a certain geographic area for a certain period of time after they quit or are fired. A non-solicitation contract is an agreement signed by an employee or contractor where he/she agrees that they will not contact and/or solicit an employer's customers and/or remaining employees for a certain period of time after they quit or are fired.

This article will address non-compete and non-solicitation agreements from the employers point of view.

Non-Compete Agreements: A Primer on non-compete, non-solicitation and trade secret protection

Companies need to protect their trade secrets, confidential information and intangible property.  Non-compete, non-solicitation and trade secret contracts are important devices which can help increase company protection against misappropriation of trade secrets.  In general:

1. the broader the non-compete clause, the less enforceable it is;
2. the more an employee has access to confidential information or trade secrets, the more enforceable it is;
3. additional compensation paid for a non-compete clause makes a non-compete  more enforceable (although no additional compensation may be necessary at all).