Missouri Court Refuses To Enforce Non-Compete Agreement
02/23/09
Barbara Yates, who was employed as a payday loan company branch manager, signed a non-compete agreement that barred her from working for any competing business within a 50-mile radius for two years after termination of her employment. After she was fired, Ms. Yates went to work for a nearby competitor, where she performed duties similar to those in her former job. During trial of her former employer’s suit for alleged violation of her non-compete agreement, Ms. Yates testified that she did not take her former employer’s client lists, she had not solicited former clients, she had been unable to find other work, and she was the only member of her family who was working.
The trial court refused to enforce the non-compete agreement, and the Missouri Court of Appeals for the Southern District affirmed the refusal. The Court of Appeals noted that the agreement did not clearly define what was considered a competing business, and the Court found the 50-mile geographic restriction to be unreasonably broad. The Court also found that the non-compete clause created an unreasonable hardship for Ms. Yates, given her circumstances. Payroll Advance, Inc. v. Yates, 270 S.W.3d 428 (Mo. App. 2008)
For more information, visit Business Litigation, Corporate Law and Employment Law.
Back to News
At Swanson Midgley, we listen to our clients' needs in order to help them plan for the future and achieve their goals.
