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VA Supreme Court Finds Non-Compete Over Broad and Unenforceable


VIRGINIA SUPREME COURT FINDS NON-COMPETE AGREEMENT IS OVER BROAD AND UNENFORCEABLE

On November 4, 2011, the Virginia Supreme Court, in the case of Home Paramount Pest Control v. Justin Shaffer, ruled in favor of a former employee of a pest control company and his new employer finding that the “non-compete” agreement provision in the employee’s previous employment agreement to be overly broad and therefore, unenforceable. The “non-compete” agreement would have prevented the former employee for a period of two years from engaging “directly or indirectly or concern himself/herself in any manner whatsoever” in activities of a pest control business. In finding the “non-compete” provision to be unenforceable, the Court explained that the provision essentially prohibits the employee from working for his present employer or any other business in the pest control industry in any capacity. The Court further found that the previous employer couldn’t prove a legitimate business interest for such a broad limitation. Interestingly, though, the same Court upheld an identical “non-compete” provision in the case of Paramount Termite Control Co. v. Rector over twenty years ago. The Court explained that the law has evolved over the years such that the provision is now unenforceable.



Cindra Dowd


 
 



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