Lucht's Concrete Pumping, Inc. v. Horner

255 P.3d 1058 (Colo. 2011) · Supreme Court of Colorado · May 31, 2011 · No. 09SC627

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

  1. An employer's forbearance from terminating an existing at-will employee constitutes adequate consideration to support a noncompetition agreement.
  2. 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

  1. 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.
  2. 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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