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What special rules apply for a preliminary injuction?

Ormco Corporation v Johns, 838 So.2d 360 (Ala. 2003):

A. “when seeking a preliminary injunction to enforce a noncompetition agreement against a former employee salesperson, the employer, to make use of the [rebuttable] inference [of irreparable injury], must make an prima facie showing 1) that a valid noncompetition agreement exists, 2) that the employer has a protectible interest, and 3) that the former employee salesperson is actively competing with his or her former employer in the same geographic area in violation of the noncompetition agreement.”

B. “However, the employee can rebut this inference by producing evidence that the competition of the employee will not irreparably injure the employer. As discussed above, such evidence could include evidence indicating that the customers' purchase decisions were based primarily on an independent preference for the particular goods of the employer rather than on the relationship between the customer and the salesperson (so that the salesperson has no substantial "personal hold" on the customers, see Rosewood Mortgage Corp., 383 N.W.2d at 459; Webb Publ'g Co., 426 N.W.2d at 448-49), or evidence indicating either that the salesperson did not have confidential information or that the information was not really confidential.”

C. “the burden shifts back to the employer to produce sufficient evidence (beyond that necessary for the prima facie showing described above) of irreparable injury.”

[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


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