Summary
The Supreme Court of Georgia held that an employee nonsolicitation covenant was not unenforceable merely because it lacked a time restriction on the period during which the employees had served the employer’s customers. The court concluded that the covenant was limited to customers served by the employees and was enforceable for its two-year post-termination period, reversing and remanding for consideration of other overbreadth issues. Justice Hines dissented.
Holdings
- Yes. The covenant is enforceable because the critical factor is whether the former employee ever served the customer, not the length of time since he or she may have done so. The employer has a protectible interest in customer relationships established or nurtured by the employee, and a two-year post-termination restriction on solicitation of those customers is reasonable.
Questions Presented
- Whether the Court of Appeals erred in holding that the nonsolicitation covenant was unenforceable because it lacked a time restriction on the period during which the employees had served the employer's customers.
Disposition
reversed_and_remanded
Cases Cited (6)
- Wiley v. Royal Cup, 258 Ga. 357, 370 S.E.2d 744 (1988)(followed)
- Marcoin, Inc. v. Waldron, 244 Ga. 169, 259 S.E.2d 433 (1979)(followed)
- W.R. Grace & Co. v. Mouyal, 262 Ga. 464, 422 S.E.2d 529 (1992)(interpreted)
- Gill v. Poe & Brown of Ga., 241 Ga.App. 580, 524 S.E.2d 328 (1999)(distinguished)
- C & L Indus. v. Kiviranta, 13 Neb.App. 604, 698 N.W.2d 240 (2005)(cited)
- Palmer & Cay of Ga. v. Lockton Cos., 273 Ga.App. 511, 615 S.E.2d 752 (2005)(reversed)
Cited In (0)
No citing cases on record yet.
Court Document
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