NanoMech brought suit against a former employee, Arunya Suresh, for breach of her noncompete agreement. The district
Question:
NanoMech brought suit against a former employee, Arunya Suresh, for breach of her noncompete agreement. The district court granted summary judgment on the pleadings for Suresh, ruling that the noncompete agreement was unenforceable under Arkansas law. NanoMech appealed, and the appellate court affirmed.
1. What was the legal issue in this case? What did the court decide?
2. What did the noncompetition agreement call for? Why does the court conclude that this agreement is unenforceable?
3. What, if any, restrictions might have been reasonable and enforceable in this case? Why?
4. The district court decision in this case mentions that the former employee Suresh was terminated by her new employer. What do you think happened? How does the existence of restrictive covenants complicate post-employment life for both the former employee and prospective new employers?
5. What should NanoMech have done differently? Which alternative means are at employer’s disposal to achieve some of the same ends as intended by the use of non-competition agreement?
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