Case Example 9.5

An insurance firm, Brown & Brown, Inc., hired Theresa Johnson to perform actuarial analysis. On her first day of work, Johnson was asked to sign a covenant not to compete, which prohibited her from servicing any of Brown's clients for two years after leaving the firm. When Johnson's employment with Brown was terminated years later, she to work for Lawley Benefits Group, LLC. Brown sued to enforce the covenant.

A court ruled that the covenant was overly broad and unenforceable because it attempted to restrict Johnson from working for any of Brown's clients, without regard to whether she had a relationship with those clients.

Suppose that a non-solicitation or non-compete agreement is held to be unenforceable, but that the employee has violated what would have been its terms by competing with the employer. Are there other causes of action that the employer might assert against the employee?

Should an employer be able to restrict a former employee from engaging in a competing business on a global level?