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Article: Florida Supreme Court Rules Pre-1996 Noncompete Agreements Enforceable by Corporate Successors.
- Article from:
- Mondaq Business Briefing
- Article date:
- August 15, 2003
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In a significant, pro-business decision, a unanimous Florida Supreme Court has ruled that corporations that acquire other companies through stock buyouts or mergers may enforce employee noncompete agreements entered into under the previous management.
In Corporate Express Office Products Inc. v. Doug Phillips, the court ruled that it was not necessary for noncompete agreements signed by employees before July 1, 1996, to include an assignment clause expressly authorizing enforcement by an employer's successor in order for the successor to enforce its terms.
The ruling, handed down April 17, is limited to noncompete agreements executed before July 1, 1996. ...