Assurance Data, Inc. v. Malyevac

Summary

The Supreme Court of Virginia held that a demurrer cannot be used to decide on the merits whether non-compete and non-solicitation provisions in an employment agreement are enforceable. Enforceability of restraints on competition requires consideration of the agreement and factual circumstances, including the restraint's function, geographic scope, and duration. The court reversed the dismissal of Assurance Data's complaint and remanded for further proceedings.

Holdings

1. A demurrer cannot be used to decide on the merits whether contractual non-compete and non-solicitation restraints are enforceable.
2. The circuit court erred by sustaining the demurrer and dismissing the entire complaint because the restraints were unenforceable as a matter of law.

Questions Presented

1. Whether a demurrer may be used to decide on the merits that contractual non-compete and non-solicitation restraints are unenforceable.
2. Whether the circuit court erred by sustaining the demurrer and dismissing the entire complaint with prejudice on the ground that the restraints were unenforceable as a matter of law.

Disposition

reversed_and_remanded