John Goyak & Associates, Inc. v. Terhune

Summary

The Ninth Circuit reviewed a preliminary injunction arising from an alleged breach of a non-solicitation clause and interference with business relationships. It affirmed the injunction in part but remanded for the injunction to conform to the agreement’s language and to terminate two years after the agreement expired.

Holdings

1. The district court did not abuse its discretion in granting the preliminary injunction because John Goyak & Associates demonstrated probable success on the merits of its breach-of-contract claim and a possibility of irreparable injury absent an injunction.
2. The injunction had to be restructured because its scope was neither consistent nor coterminous with the language of the agreement, and it had to terminate two years after the agreement expired.

Questions Presented

1. Whether the district court abused its discretion by granting a preliminary injunction based on the alleged breach of the contractual non-solicitation provision.
2. Whether the scope and duration of the preliminary injunction conformed to the language and term of the parties' agreement.

Disposition

reversed_and_remanded