Lake Land Employment Group of Akron, LLC v. Columber

Summary

The Ohio Supreme Court held that continued at-will employment can constitute consideration for a noncompetition agreement entered into after employment has begun. The court concluded that the agreement was not void for lack of consideration because the employer continued the employment relationship rather than terminating it after requiring assent to the new restriction. The court remanded for determination of whether the agreement’s geographic and temporal restrictions were reasonable and enforceable.

Holdings

1. Forbearance by an at-will employer from discharging an at-will employee constitutes consideration supporting a noncompetition agreement when the employee assents to the agreement in exchange for continued employment on the new terms.
2. The noncompetition agreement was not void for lack of consideration because Columber continued in the at-will employment relationship for ten years after signing it; courts may not inquire into the adequacy of consideration, although they may assess the reasonableness of the restraint and other contract requirements.

Questions Presented

1. Whether subsequent continued employment alone constitutes consideration for a noncompetition agreement entered into after an at-will employment relationship has begun.
2. Whether the noncompetition agreement was unenforceable for lack of consideration.
3. Whether the reasonableness of the agreement's temporal and geographic restrictions had to be determined on remand.

Disposition

reversed_and_remanded