Employment contract – covenant not to compete held unreasonable and overbroad
In Fellows v. All Star Inc., decided 3/17/05, the Georgia Court of Appeals held that the non-competition covenant in an employment contract was unreasonable and overbroad when it prohibited the former employees from contacting or soliciting any customer of the employer, no matter where located and no matter whether the employees had had contact with those customers.
The reasonableness of a non-compete clause is determined by applying a three-element test of duration, territorial coverage, and scope of prohibited activity. If not carefully and narrowly drafted, such covenants may well be unenforceable. Broad, overreaching provisions may be effective to intimidate employees, but not enforceable when tested in court.
See the court’s opinion below.
The Shigley Law Firm represents plaintiffs in wrongful death and catastrophic injury cases statewide in Georgia, and in other states subject to the multijurisdictional practice and pro hac vice rules in each state. Ken Shigley was designated as a “SuperLawyer” in Atlanta Magazine and one of the “Legal Elite” in Georgia Trend Magazine. He is a Certified Civil Trial Advocate of the National Board of Trial Advocacy, Chair of the Southeastern Motor Carrier Liability Institute and former chair of the Georgia Insurance Law Institute. He particularly focuses on cases arising from truck wrecks and accidents (tractor trailers truck wrecks, semi truck wrecks,18 wheeler truck wrecks, big rig truck wrecks, log truck wrecks, dump truck wrecks).