Noncompete agreements are typically found in employment agreements between employers and their employees. But that’s not the only place these clauses are found. Sometimes you’ll have two sophisticated companies of roughly equal bargaining power who, for whatever reason, wish to enter into a binding agreement placing restrictions on the one…
The Virginia Business Litigation Blog
Can Your Business Prove its Noncompete Agreements Are Reasonable?
Once upon a time, courts would routinely dismiss non-compete lawsuits brought by businesses against their former employees if the agreements at issue appeared to impose an unreasonable burden on the employee’s ability to earn a living. The rules of the game changed a bit back in 2013 when the Virginia…
Fraudulent Inducement Claims Not Covered by Source-of-Duty Rule
Many lawyers pursuing business litigation on behalf of their clients will file a whole panoply of claims rather than content themselves with a single count for breach of contract. As the law generally permits a wider range of remedies (and higher damages awards) for tort claims like fraud and tortious…
Kevin Hart Did Not Breach Fiduciary Duty, Says Virginia Court
A couple of years ago, comedian Kevin Hart teamed up with a Virginia mobile-game developer called Stand Up Digital, Inc., to develop and release a video game called “Gold Ambush” that would feature Hart and his family members as playable characters. Hart licensed his likeness to Stand Up and was…
Waiving the Statute of Limitations: Harder than You Might Think
As a general rule, legal rights may be waived by contractual agreement. The protection afforded by statutes of limitations may be waived like other rights, but only in very narrow circumstances, due to a Virginia law that few know about. The General Assembly decided to make it a bit more…
The Independent Personal Stake Exception to Intra-Corporate Immunity
A conspiracy to harm another’s business may be actionable under Virginia’s business-conspiracy statute, which provides for a cause of action where two or more people “combine, associate, agree, mutually undertake or concert together for the purpose of…willfully and maliciously injuring another in his reputation, trade, business or profession by any…
Tortious Interference with Anticipated Future Contract
Virginia does recognize a legal cause of action for improper interference with an anticipated business contract. The tort is known as “tortious interference with business expectancy,” “tortious interference with future economic benefit,” “tortious interference with prospective economic advantage,” or some variant of that phrase. It’s what you sue for when…
Tell the Jury About Your Plea in Bar Now, or Later
If you get sued in Virginia on a claim your lawyer tells you is likely barred by the statute of limitations, you can raise the defense by way of a so-called “plea in bar.” A plea in bar is a pleading that presents a single set of facts that, if…
Business Conspiracy Claims Survive Under Third-Party Rule
Not long ago, Serco, Inc., won summary judgment on various claims asserted against it by L-3 Communications Corp. and L-3 Applied Technologies, Inc., including claims for statutory business conspiracy, common law conspiracy, and tortious interference with business expectancy. On appeal to the Fourth Circuit, however, the court found that the…
When Preemption Leads to Unanticipated Removal
When you sue someone, you sometimes have a choice between filing in state court or federal court, and courts will generally defer to your preferred forum. In appropriate circumstances, however, a defendant can remove the case from state court to federal court. Under the current removal statute, 28 U.S.C. §…