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When David Jones resigned from AAA Services, an emergency restoration contractor doing business in Utah, Nevada and Idaho, he remembered that had signed non -
When David Jones resigned from AAA Services, an emergency restoration contractor doing
business in Utah, Nevada and Idaho, he remembered that had signed noncompete agreement with
the company. The noncompete agreement was not part of his original employment contract with
AAA; he signed it as part of a promotion package during his employment with AAA. The
agreement said that Mr Jones could not work in the field of disaster restoration for one year on any
project within miles of any of AAAs six offices.
Despite this, Mr Jones soon began working for one of AAAs direct competitors, Harvey
Restorations, as a sales manager in its emergency restoration operation. His new job brought him
into direct contact with the insurance adjusters and others with whom he had developed and
furthered relationships while employed by AAA business development contacts on whom AAA
depends in its highly competitive market. You are an executive working at AAA and it is your responsibility to decide whether and how to
attempt to enforce the noncompete agreement, and refer the matter to the companys attorney.
To that end,
Specifically define and identify the legal and public policy issues surrounding noncompete
agreements generally. Define any boundaries and limitations regarding noncompete
agreements and the various interests at play in these matters.
Specifically detail whether and why or why not AAAs noncompete agreement with Mr
Jones is enforceable. As part of that discussion, note any potential defenses Jones may have
against enforcement.
Specifically identify the legal and equitable remedies available to AAA and what you would
like to see as a result.
Specify what steps the business should take, if any, to enforce its noncompete agreement
with Mr Jones. Provide a specific plan
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