Jackson Lewis: Minnesota Federal Court Rejects Automatic Tolling of Non-compete | Practical Law

Jackson Lewis: Minnesota Federal Court Rejects Automatic Tolling of Non-compete | Practical Law

This Law Firm Publication by Jackson Lewis LLP discusses the US District Court for the District of Minnesota's decision that a violation of a non-compete agreement does not automatically toll its terms. In US Water v. Watertech of America, the plaintiff sought a preliminary injunction to enforce a non-compete against its former employee including for periods beyond the agreement's expiration. The court granted the preliminary injunction only through the non-compete's expiration date, rejecting the plaintiff's assertions that the agreement had a tolling provision. The court also held it had no authority to toll the agreement for the period of the defendant's breach, as a matter of equity under Minnesota law.

Jackson Lewis: Minnesota Federal Court Rejects Automatic Tolling of Non-compete

Practical Law Legal Update 6-545-4686 (Approx. 3 pages)

Jackson Lewis: Minnesota Federal Court Rejects Automatic Tolling of Non-compete

by Jackson Lewis LLP
Published on 10 Oct 2013Minnesota, United States
This Law Firm Publication by Jackson Lewis LLP discusses the US District Court for the District of Minnesota's decision that a violation of a non-compete agreement does not automatically toll its terms. In US Water v. Watertech of America, the plaintiff sought a preliminary injunction to enforce a non-compete against its former employee including for periods beyond the agreement's expiration. The court granted the preliminary injunction only through the non-compete's expiration date, rejecting the plaintiff's assertions that the agreement had a tolling provision. The court also held it had no authority to toll the agreement for the period of the defendant's breach, as a matter of equity under Minnesota law.