Our Fourth of July was made much brighter with a big non-compete win for a client.
Our client, a successful recruiter (think head-hunter) in SW Virginia, had been sued last spring, for over $300,000 by her prior employer.
It was alleged that she breached her contract when she started her own recruiting business within a 50 mile radius of her old office (MRI of New River Valley). In addition, it was alleged she misappropriated proprietary information, trade secrets, etc.
As the contract required arbitration, the case was arbitrated instead of being filed in a local Circuit Court. The case was decided by a Virginia Arbitrator – and our client won!
The contract was held to be unreasonable restriction on her right to make a living (the litmus test under Virginia law) as well as being more over broad than necessary to protect the employer’s legitimate business interest. In addition, the arbitrator held that two separately numbered provisions could not be severed, but must be read together as they served in concert to restrict employment. Lastly, the Arbitrator held the plaintiff Franchise owner, failed to prove specific financial loss as a result of her alleged breach.
Every case is different and unique but the ruling is great news for Employees in the recruiting industry, as well as Virginia residents.
Stay tuned as we share more about the case facts, and ruling.