U.S. - Virginia
2019.06.12 Overview of VA Non-compete Law
New "Function" Standard (2011.Nov.21).
2013.Sept.12 Enforcement of Non-Compete Held Inherently Factual - Not Suited to Demurrer (aka Motion to Dismiss). See Assurance Data v. Malyevac, VA Supreme Court.
General Rule. See the following text from Omniplex World Services Corp. v. U.S. Investigations Services, 270 Va. 246, 249, 618 S.E.2d 340, 342 (2005):
Each non-competition agreement must be evaluated on its own merits, balancing the provisions of the contract with the circumstances of the businesses and employees involved. See Modern Env'ts, 263 Va. at 494-95, 561 S.E.2d at 696.
Business Transaction - NonCompete
2012.Feb.14 Upheld in Land Sale though Overbroad. In BP Products v Stanley, the 4th Cir. ruled in favor of "BP's action seeking to enforce a restrictive covenant in a deed." Quoting further from the decision:
2011.May.4 "Greater Latitude" in Sale of Business -- "Where a contract for the sale of a business between a vendor and buyer contains a covenant not to compete, however, greater latitude is allowed in determining the covenant’s reasonableness than when the covenant relates to an employment contract. Alston Studios, Inc. v. Lloyd V. Gress & Assocs., 492 F.2d 279, 284 (4th Cir. 1974) ..."McClain & Co., Inc. v. Carucci, 2011 U.S. Dist. LEXIS 48404 (W.D. Va.).
Non-Solicitation Agreements - General Rule: "These same standards apply when reviewing non-solicitation agreements. Foti v. Cook. 220 Va. 800, 805, 263 S,B.2d430,433 (1980)." Daston Corp. v MiCore Solutions (VA 19th Cir., Fairfax), further stating that:
Non-compete Invalid (too broad in scope) while Non-solicit Enforced. Daston Corp. v MiCore Solutions (VA 19th Cir., Fairfax), stating as follows.
Compare Simmons v. Miller, 261 Va. 561, 544 S.B.2d 666 (noncompete clause applyina to "any business similar to the type of business conducted by Employer" was over broad and unenforceable) and Mantech Int'l Corp. v. Analex, 75 Va. Cir. at 357 (the phrase "predominantly similar types of products and/or services" is unenforceable) with Roanoke Eng'g Sales Co., Inc. v. Rosenbaum, 223 Va. 548, 551, 290 S.E.2d 882, 883 (1982) (noncompete clause that applied to "any business similar to the type of business conducted by [the employer]" was enforceable) and Lasership, Inc. v. Watson, 2009 Va. Cir. LEXIS 664 (2009) (noncompete clause applicable to "substantially similar" products and services is enforeeable).
See also: How IronClad is Your Non-Compete (2011.Mar.7) reviewing a recent Virginia decision that refused injunctive relief against a nurse practitioner who left employment in order to open a competing business (on the ground that the underlying non-compete and non-solicit agreement was overly-broad).
Non-compete Overly Broad "Amoeba" despite Business Transaction: see Specialty Marketing v Lawrence (15th Jud. Cir., 2010), providing that --
Non-compete in Claims Release -- results in greater judicial deference, drawing from sale of business rules, per McClain & Co., Inc. v. Carucci, 2011 U.S. Dist. LEXIS 48404 (W.D. Va. May 4, 2011).
Stock Awards and On-line Execution Enforces re Non-compete Covenants - see MeadWestvaco Corp. v. Bates, No. CL13-1589 (Va. 12th Cir. Ct. Aug. 1, 2013) (unpublished)
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