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Georgia Non-compete News


In a twist on the typical non-compete case, in Wells et al. v. Daughtery Systems, Inc., 2014 WL 4545790 (N.D. Ga. Sept. 12, 2014), former employees brought suit against their former employer seeking a declaration that the restrictive covenants contained in their employment agreements with their former employer were unenforceable.  The former employees also sought to enjoin their former employer from, among other things, enforcing the restrictive covenants.   The federal district court granted the former employees’ request for a temporary restraining order, concluding that the former employees would suffer irreparable harm because “the restriction to the former employee’s access to customers consisted of injuries ‘in the form of lost opportunities, which are difficult, if not impossible, to quantify’” and because “[lo]ss of business due to free and fair competition is not a harm; violation of legal rules designed to promote such competition is a harm.”  Wells,  2014 WL 4545790 at *3.

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