Last year two rival appliance companies, Whirlpool and Electrolux, battled it out in the courts over a district sales manager who was enticed to jump between the companies. The sales manager had signed a “Leadership Agreement” with Whirlpool in June 2006 that included a one-year covenant not to compete and a one-year customer non-solicitation clause.
A federal judge denied Whirlpool’s request for a preliminary injunction because the non-compete provision contained no geographical restriction and Whirlpool could not show that the sales manager had disclosed or was likely to disclose any confidential information to his new employer, the court concluded that injunctive relief was not warranted. Whirlpool not only left court empty-handed, it may have also hurt itself by creating the impression with other employees who signed similar “Leadership Agreements” that their agreements are similarly unenforceable.
As we have said here before…”pigs get fat and hogs get slaughtered”!!