The Seventh Circuit held that the record showed likelihood that the covenants could be enforced against plaintiff (who had become employed by one of defendant's competitors) if those covenants were limited to the plaintiff selling only specific products that defendant sold, and if the plaintiff was precluded only from selling said products to defendant's actual customers in actual region that defendant had managed while working for defendant. Additionally, the defendant had legitimate interest in preventing the plaintiff, as former high ranking manager, from using defendant's customer relationships and proprietary business information for competitor's benefit. The Court further noticed that the fact that the covenants were in fact too broad did not require that District Court void those covenants in their entirety instead of limiting their scope.
Defendant, former employer, sued its former employee for a preliminary injunction enforcing restrictive covenants contained in plaintiff's employment contract with defendant. Turnell v. Centimark Corp., No. 14-2758 (7th Cir. July 29, 2015). The non-solicitation and non-compete provisions prohibited the plaintiff from soliciting defendant's actual and prospective clients or from being employed by defendant's competitor for two years. The District Court entered the injunction. The Seventh Circuit affirmed.
The Seventh Circuit held that the record showed likelihood that the covenants could be enforced against plaintiff (who had become employed by one of defendant's competitors) if those covenants were limited to the plaintiff selling only specific products that defendant sold, and if the plaintiff was precluded only from selling said products to defendant's actual customers in actual region that defendant had managed while working for defendant. Additionally, the defendant had legitimate interest in preventing the plaintiff, as former high ranking manager, from using defendant's customer relationships and proprietary business information for competitor's benefit. The Court further noticed that the fact that the covenants were in fact too broad did not require that District Court void those covenants in their entirety instead of limiting their scope.
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