Farm Credit Services of North Central Wisconsin, ACA v. Wysocki, 2001 WI 51, 243 Wis. 2d 305

Summary

The Supreme Court of Wisconsin held that a covenant not to compete restricting an employee from providing services to customers he had serviced was not invalid per se under Wisconsin Statute § 103.465. The court remanded for determination of whether the restriction was reasonably necessary to protect the employer. It also held that the original employer survived successive mergers and that Farm Credit Services could enforce the covenant, reversing summary judgment for the employee.

Holdings

1. The covenant was a narrowly tailored customer-list restriction rather than a geographic restriction and was not invalid per se. The covenant's ultimate reasonableness and enforceability must be determined under Wis. Stat. § 103.465.
2. Production Credit Association of Wausau was the surviving corporation of both mergers and was merely renamed Production Credit Association of North Central Wisconsin and then Farm Credit Services. Farm Credit Services therefore could enforce the covenant not to compete.

Questions Presented

1. Whether the covenant not to compete was void per se because mergers expanded the employer's geographic authority.
2. Whether Farm Credit Services was the same surviving corporation as Production Credit Association of Wausau and therefore could enforce the 1983 employment agreement.
3. Whether summary judgment in favor of Wysocki was appropriate.

Disposition

reversed_and_remanded