Youngblood Case 1.3-2 Group Case
3-2 Group Case Analysis: Formation of a Contract
Anna Cristillo, Tiffany Eicher, Michelle Santos, Erika Thorsell, Maryam Tngrian
Southern New Hampshire University
2015
In June 1999, Mike Youngblood signed an employment contract with Southwest Industries, Inc. to work as a recruiter for the organization. Included in this employment contract was a noncompete agreement indicating Youngblood was not permitted to work for a competitor within 100 miles of Southwest for one year following employment termination with Southwest Industries, Inc. After approximately four years of employment with Southwest, Youngblood quit working for Southwest and started working for TDI Technical Services, which is a competitor of Southwest that is …show more content…
v. Shaffer, 2011). The non-compete agreement in Youngblood’s contract included a one year, 100-mile radius which would be considered rational. It is also pertinent to consider the nature of Youngblood’s position within TDI and any further restrictions under the non-compete agreement. It could be argued that Youngblood’s position is not in competition of his position held under Southwest or that the non-compete restrictions (if there are any) are beyond any legitimate business interest as was found in the case of Home Paramount Pest Companies, Inc. v. Shaffer, 2011, where Shaffer was presented from holding any position in the pest control industry, even as a passive stockholder. Length of employment with an organization is another factor to consider when determining if a non-compete agreement is valid. In Fifield v. Premier Dealer Services, Inc., 2013, the court found that Fifield was not in breach of a non-compete agreement as he was not employed with the organization for longer than two years, which is the requirement in Illinois. However in most other states, initial employment is enough to be considered sufficient to enforce a non-compete agreement. According to a survey conducted by Beck Reed Ridden LLP (2013), no other states have a minimum employment requirement. …show more content…
Employers have a right to protect their relationships with their customers and their confidential information, but former employees have a right to earn a living.
References:
Beck Reed Ridden LLP. (2013, August 14). 50 State non-compete survey. Retrieved from http://www.beckreedriden.com/50-state-noncompete-survey/
Charles T. Creech, Inc. v. Brown, 433 S.W.3d 345 (Ky. 2014).
Fifield v. Premier Dealer Services, Inc., 993 N.E.2d 938 (Il. 2013).
Home Paramount Pest Control Companies, Inc. v. Shaffer, 718 S.E.2d 762 (Va. 2011).
Twomey, D. P., & Jennings, M. M. (2014). Business law: Principles for today’s commercial environment (4th ed.). Mason, OH: Cengage Learning.
Enforceability of Covenants Not To Compete in California By Dan Woods and Tim Rusche White & Case, Los Angeles
Non-Competition Agreements: Overview. Retrieved from:
Anna Cristillo, Tiffany Eicher, Michelle Santos, Erika Thorsell, Maryam Tngrian
Southern New Hampshire University
2015
In June 1999, Mike Youngblood signed an employment contract with Southwest Industries, Inc. to work as a recruiter for the organization. Included in this employment contract was a noncompete agreement indicating Youngblood was not permitted to work for a competitor within 100 miles of Southwest for one year following employment termination with Southwest Industries, Inc. After approximately four years of employment with Southwest, Youngblood quit working for Southwest and started working for TDI Technical Services, which is a competitor of Southwest that is …show more content…
v. Shaffer, 2011). The non-compete agreement in Youngblood’s contract included a one year, 100-mile radius which would be considered rational. It is also pertinent to consider the nature of Youngblood’s position within TDI and any further restrictions under the non-compete agreement. It could be argued that Youngblood’s position is not in competition of his position held under Southwest or that the non-compete restrictions (if there are any) are beyond any legitimate business interest as was found in the case of Home Paramount Pest Companies, Inc. v. Shaffer, 2011, where Shaffer was presented from holding any position in the pest control industry, even as a passive stockholder. Length of employment with an organization is another factor to consider when determining if a non-compete agreement is valid. In Fifield v. Premier Dealer Services, Inc., 2013, the court found that Fifield was not in breach of a non-compete agreement as he was not employed with the organization for longer than two years, which is the requirement in Illinois. However in most other states, initial employment is enough to be considered sufficient to enforce a non-compete agreement. According to a survey conducted by Beck Reed Ridden LLP (2013), no other states have a minimum employment requirement. …show more content…
Employers have a right to protect their relationships with their customers and their confidential information, but former employees have a right to earn a living.
References:
Beck Reed Ridden LLP. (2013, August 14). 50 State non-compete survey. Retrieved from http://www.beckreedriden.com/50-state-noncompete-survey/
Charles T. Creech, Inc. v. Brown, 433 S.W.3d 345 (Ky. 2014).
Fifield v. Premier Dealer Services, Inc., 993 N.E.2d 938 (Il. 2013).
Home Paramount Pest Control Companies, Inc. v. Shaffer, 718 S.E.2d 762 (Va. 2011).
Twomey, D. P., & Jennings, M. M. (2014). Business law: Principles for today’s commercial environment (4th ed.). Mason, OH: Cengage Learning.
Enforceability of Covenants Not To Compete in California By Dan Woods and Tim Rusche White & Case, Los Angeles
Non-Competition Agreements: Overview. Retrieved from: