Summary
The Colorado Supreme Court held that an employer's forbearance from terminating an existing at-will employee constitutes adequate consideration for a noncompetition agreement. The court reversed the court of appeals and remanded for assessment of the agreement's reasonableness and further proceedings.
Holdings
- An employer's forbearance from terminating an existing at-will employee constitutes adequate consideration to support a noncompetition agreement.
- After determining that the noncompetition agreement is supported by consideration, the court must assess whether the covenant is reasonable under the facts of the case.
Questions Presented
- Whether an employer's continued employment of an existing at-will employee, through forbearance from terminating the employee, constitutes adequate consideration for a subsequently executed noncompetition agreement.
- Whether the noncompetition agreement must be assessed for reasonableness after the court determines that it is supported by consideration.
Disposition
reversed_and_remanded
Cases Cited (26)
- Lucht's Concrete Pumping, Inc. v. Horner, 224 P.3d 355 (Colo. App. 2009)(reversed)
- Continental Air Lines, Inc. v. Keenan, 731 P.2d 708 (Colo. 1987)(followed)
- Freudenthal v. Espey, 45 Colo. 488, 102 P. 280 (1909)(followed)
- W. Fed. Sav. & Loan Ass'n of Denver v. Nat'l Homes Corp., 167 Colo. 93, 445 P.2d 892 (1968)(followed)
- Troutman v. Webster, 82 Colo. 93, 257 P. 262 (1927)(followed)
- Int'l Paper Co. v. Cohen, 126 P.3d 222 (Colo. App. 2005)(followed)
- Jones v. Jones, 1 Colo. App. 28, 27 P. 85 (1891)(followed)
- Garcia v. Aetna Fin. Co., 752 F.2d 488 (10th Cir. 1984)(followed)
- Coors Brewing Co. v. Floyd, 978 P.2d 663 (Colo. 1999)(followed)
- Kuta v. Joint Dist. No. 50(J), 799 P.2d 379 (Colo. 1990)(distinguished)
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