FOCUS: Employment Law

Former Employer’s Non-Compete Lawsuit Gets Dismissed

This client rose through the ranks of a national, multibillion dollar corporation to be second in charge of the company’s Midwest operations. During the course of this relationship, the client signed an employment agreement which contained an extremely harsh non-competition/non-solicitation provision with a severe liquidated damage clause and a one-sided attorney fee provision. Years later, the client resigned due to a disagreement with his superiors and took a job with a local company in the same industry. The national company filed suit in Pennsylvania against this Chicago native to enforce its non-compete and its liquidated damage provisions.

The client needed to continue working in the same industry. His new employer, also a client of Golan Christie Taglia, was concerned about being dragged into the lawsuit and having its time and energy drained by litigation with a much larger competitor. Golan Christie Taglia successfully had the case moved to Illinois to reduce fees and eliminate any benefit the national company may have had in its home state. Golan Christie Taglia then attacked the enforceability of the employment agreement for being overbroad as a matter of law and for being unsupported by sufficient consideration or benefit to the client. Golan Christie Taglia repeatedly attacked the complaints filed against the client, ultimately forcing the national company to restate its complaint three times.

After only one deposition was taken, the national employer agreed to simply dismiss its case. Golan Christie Taglia also managed to keep the new employer from being dragged into the lawsuit as a defendant and obtained a dismissal of a separate lawsuit filed against the new employer.