– The Tampa federal court denied a preliminary injunction to a transportation management company seeking to enforce non-compete agreements against four former employees due to delay in filing the lawsuit and lack of urgency.
– The court emphasized the need for speed and urgency in proving imminent and irreparable harm when seeking a preliminary injunction.
– Blue-Grace Logistics LLC, the company involved in the case, contracted with independent carriers to haul freight for customers and had hired the four former employees as carrier sales representatives.
– The restrictive covenants in the employment agreements were deemed reasonable by Blue-Grace to protect legitimate business interests.
– Blue-Grace filed the initial lawsuit against one of the former employees three days after his resignation, but did not add the other three employees to the complaint until a year later.
– Thirteen months passed between the initial lawsuit and the final filing with the court seeking a preliminary injunction. 1. The court found that under federal law, a party seeking a preliminary injunction must demonstrate a substantial likelihood of success on the merits, irreparable injury without an injunction, that their injury outweighs the harm to the opposing party, and that the injunction would not be adverse to the public interest.
2. Under Florida law, a non-compete or non-solicitation agreement can only be enforced if the party can establish the existence of a legitimate business interest and that the restrictions are reasonably necessary to enforce that interest.
3. The court determined that under Section 542.335 of Florida law, there is a presumption of irreparable injury when an employer shows a prima facie case that a former employee violated a restrictive covenant. However, under federal law, the burden is on the moving party to prove irreparable harm.
4. The court found that Blue-Grace’s delays throughout the case rebutted the presumption of irreparable injury under Florida law. 1. The defendants did not dispute Blue-Grace’s claims of violating their employment agreements by working for Traffic Tech.
2. Blue-Grace’s litigation strategy caused delays and rebutted the presumption of irreparable harm.
3. Blue-Grace was unable to prove that its injury was irreparable, and did not effectively counter the evidence put forward by the defendants. – Employers must act quickly to win a preliminary injunction and enforce non-compete agreements against former employees.
– It is important for employers to provide convincing, admissible evidence of irreparable harm when seeking to enforce non-competes.
– Delay can be advantageous for employees defending against non-compete enforcement.
– Removing a case to federal court can also be advantageous for employees defending against non-compete enforcement. – Cantrell Astbury Kranz, P.A. specializes in resolving business disputes, including breach of contract, partnership disputes, and issues between franchisors and franchisees.
– The firm also handles securities and FINRA matters, defamation, libel, and slander cases, and sexual harassment claims.
– Cantrell Astbury Kranz, P.A. is experienced in non-compete and employee mobility issues, unpaid commissions and bonuses, and discrimination, harassment, and retaliation cases.
– The firm’s practice areas also include Family and Medical Leave Act, executive compensation, and litigation.
– Cantrell Astbury Kranz, P.A. is known for its recent successes, and its senior attorneys are both trial tested and subject matter experts.
Tampa Federal Court Says Move with Speed and Urgency to Win a Noncompete Preliminary Injunction
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