Khosrow Daneshgari v. Patriot Towing Services, LLC

Summary

The Georgia Court of Appeals held that a trial court may not extend an injunction enforcing a noncompete agreement beyond the agreement’s contractual expiration date. Relying on Georgia Supreme Court precedent, the court concluded that such an extension would impermissibly rewrite the parties’ contract, and it reversed that portion of the contempt orders while leaving other rulings unaddressed.

Holdings

1. A court may not indefinitely extend an injunction enforcing a noncompete agreement beyond the agreement's express expiration date because doing so rewrites the parties' contract.
2. The trial court's contempt power did not authorize an indefinite injunction extending the noncompete obligation beyond its contractual expiration.

Questions Presented

1. Whether a trial court may extend an injunction enforcing a noncompete agreement beyond the agreement's express expiration date.
2. Whether the trial court's contempt power permits it to continue enforcing a noncompete restriction after the contractual period has expired.

Disposition

reversed