« Unpublished papers | Main | What special rules apply for a preliminary injuction? »

Does the non-compete agreement continue if the company is sold?

The answer seems to depend on how the sale was accomplished.

A. In Clark Substations LLC v Ware, 838 So. 360 (Ala. 2002), the court refused to enforce a covenant against employees when the assets of a corporation had been sold to another corporation and the employees had not signed a new non-compete agreement.

B. A successor corporation which is the product of a merger may enforce an agreement against the employees of the former corporation. Sevier Insurance Agency Inc. v Willis Corroon Corp., 711 So.2d 995 (Ala. 1998).

[This is only a summary of a few cases. This is presented for informational purposes only. Contact a lawyer for an assessment of your situation.]

This entry was posted by Edward at 12:00 PM, 30 September 2006 | Categories: Non-competition

The picture above was made in 1914 by the Birmingham Engraving Co. This reproduction is from the Library of Congress Prints and Photographs Division Washington, D.C. 20540 USA.

Information about ...

Contact me
Edward Still Law Firm, LLC
130 Wildwood Parkway
Suite 108 PMB 304
Birmingham AL 35209
tel & fax: 205-320-2882

View Edward Still's profile on LinkedIn

Legal Notices

The Alabama Rules of Professional Responsibility require this statement: "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers."


Recently Changed Information on this Page

Entire site copyright (c) 2005-14 Edward Still. See the Creative Commons license below.

Creative Commons License
This weblog is licensed under a Creative Commons License.
Powered by
Movable Type 3.35

Hosted by Hosting Matters


Click below to move to a news feed:
Workplace Fairness
Legal News from Jurist
Constitution Newswire