Corporate & Estate Legal Services, Ltd.

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Non-Compete
Covenant found unenforceable. Employers Non-Compete Covenant was not supported
by Adequate Consideration where employment period did not exceed two years.

It
is not uncommon for employers and employees to enter into employment agreements
containing a restrictive covenant. 
Typical restrictive covenants include confidentiality agreements,
non-solicitation agreements, and agreements not to compete. Unfortunately, all
too often these agreements fail to set forth separate and specific
consideration for the restrictive covenant provisions.  Instead they rely upon a general recitation
that the promise to employ is the consideration given for all of the promises
or agreements extended by the employee. 
Employers need to
Continue Reading Fifield v. Premier Dealer Services. Illinois Two-Year Rule for non-compete agreements.

Reliable Fire v. Arredondo.  Dec. 2011. 
The Four Elements of the Three-Dimensional Rule.  The dangling ancillarity.

RELIABLE
FIRE EQUIPMENT COMPANY, v. ARNOLD ARREDONDO. 
Docket No. 111871. SUPREME COURT OF ILLINOIS. 965 N.E.2d 393; 2011
Ill. LEXIS 1836; 2011 IL 111871; 358 Ill. Dec. 322; 33
I.E.R. Cas. (BNA) 278

CASE SYLLABUS.  The enforceability of an employees’
covenant not to compete should be judged by the three-prong test of
reasonableness, of which the employer’s legitimate business interest continues
to be a part, and which looks to the totality of all of the circumstances,
rather than focusing on named specific factors.

For
Continue Reading Reliable Fire – Legitimate business interest and the totality of the circumstances.

Reliable Fire v. Arredondo.  Dec. 2011. 
The Four Elements of the Three-Dimensional Rule.  The dangling ancillarity.

RELIABLE
FIRE EQUIPMENT COMPANY, v. ARNOLD ARREDONDO. 
Docket No. 111871. SUPREME COURT OF ILLINOIS. 965 N.E.2d 393; 2011
Ill. LEXIS 1836; 2011 IL 111871; 358 Ill. Dec. 322; 33
I.E.R. Cas. (BNA) 278

CASE SYLLABUS.  The enforceability of an employees’
covenant not to compete should be judged by the three-prong test of
reasonableness, of which the employer’s legitimate business interest continues
to be a part, and which looks to the totality of all of the circumstances,
rather than focusing on named specific factors.

For
Continue Reading Reliable Fire – Legitimate business interest and the totality of the circumstances.