Covenants Not to Compete and the Duty of Loyalty in Virginia Seminar Materials

Information

The laws governing non-compete agreements and the duty of loyalty continue to change and evolve in Virginia. This publication focuses on enforcement trends and drafting tips in light of recent Virginia Supreme Court decisions.

This comprehensive, stand-alone publication is direct from an October 2012 seminar. It is available as a searchable PDF via download. Click here for more information on electronic books.

CONTENT SUMMARY

  1. Non-Compete Agreements in Virginia
    • Issues in Contract Formation
    • Enforceability After Home Paramount
  2. Duty of Loyalty and Other Workplace Unfair Competition Torts
    • Overview of the Duty of Loyalty in Virginia
    • When Does “Competition” Become “Unfair”?
    • Other Common Unfair Competition Claims

Copyright © 2012 Virginia Law Foundation. All rights reserved.


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Table of Contents

TABLE OF CONTENTS

40 QUESTIONS ABOUT NON-COMPETES AND
THE DUTY OF LOYALTY IN VIRGINIA

Edward Lee Isler, Esq., R. Mark Dare, Burt H. Whitt, Esq.,
and John M. Bredehoft, Esq.


COVENANTS NOT TO COMPETE IN VIRGINIA
Edward Lee Isler, Esq., Steven W. Ray, Esq. and Lori H. Turner, Esq.

3.1 INTRODUCTION AND OVERVIEW
        3.101 History of Virginia Law Regarding Restrictive Covenants
        3.102 General Principles

3.2 CONTRACT FORMATION
        3.201 Consideration
            A. In General
            B. Cases Finding Continued Employment as Sufficient Consideration
            C. Cases Finding Continued Employment Not Sufficient Consideration
            D. Cases Finding Additional Compensation as Sufficient Consideration
        3.202 Acceptance
        3.203 Termination
    
3.3 REASONABLENESS OF RESTRAINT
        3.301 Guidelines in Assessing Reasonableness
            A. In General
            B. Reasonableness from Employer's Standpoint
            C. Reasonableness from Employee's Standpoint
            D. Reasonableness from Public Policy Standpoint
        3.302 Criteria for Assessing Reasonableness
            A. In General
            B. Duration
            C. Geographic Scope
                1. Geographic Scope Enforceable
                2. Geographic Scope Unenforceable
            D. Restricted Activities
                1. Restricted Activities Enforceable
                2. Restricted Activities Unenforceable
            E. Ambiguities in Restrictive Covenants
            F. Public Policy
            G. Restrictive Covenants in the Technology World

3.4 MISCELLANEOUS ISSUES
        3.401 Reformation and Blue Penciling
            A. Federal Court Opinions
            B. Virginia Circuit Court Opinions
        3.402 Separability and Severability
        3.403 Indirect Participation in a Competing Business
        3.404 Assignability of Noncompetition Agreements
        3.405 Effect of Bankruptcy on Restrictive Covenants
        3.406 Noncompetition Agreement and Nonrenewal of Employment Contract
        3.407 Resignation and Re-employment
        3.408 Enforceability of Covenants in Business Purchase Agreements
        3.409 First Breach Defense
        3.410 Choice of Law Provisions
        3.411 Availability of Declaratory Relief
        3.412 Proving Damages
            A. Virginia Supreme Court Opinions
            B. Federal Court Opinions
        3.413 Statute of Limitations
        3.414 Injunctions and Temporary Restraining Orders
            A. Cases Granting Injunctive Relief
            B. Cases Denying Injunctive Relief
        3.415 Restrictive Covenants Contained in Settlement and Separation Agreements

3.5 DRAFTING CONSIDERATIONS FOR NONCOMPETITION AGREEMENTS

3.6 MODEL RESTRICTIVE COVENANT PROVISIONS
        3.601 General Noncompetition Provision
        3.602 Nonsolicitation or Nonservice of Customers
        3.603 Nonsolicitation or Non-Hiring of Employees
        3.604 Successors and Assigns Provision
        3.605 Severability and Reformation Provision
        3.606 First Breach Provision

THE DUTY OF LOYALTY IN THE WORKPLACE UNDER VIRGINIA LAW
Edward Lee Isler, Esq., Steven W. Ray, Esq. and Lori H. Turner, Esq.

3.1 OVERVIEW

3.2 AN EMPLOYEE’S DUTY OF LOYALTY
        3.201 General Duty of Loyalty
        3.202 Employees in Positions of Trust or Confidence
        3.203 Directors and Officers
        3.204 Third Party Liability

3.3 BREACH OF FIDUCIARY DUTY CLAIM MUST STATE A TORT
CLAIM INDEPDENDENT FROM A BREACH OF CONTRACT CLAIM

3.4 STATUE OF LIMITATIONS

3.5 CONCLUSION

Authors

Edward Lee Isler
R. Mark Dare
Burt H. Whitt
John M.Bredehoft
Steven W. Ray
Lori H. Turner

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