In Robert Kenneth Staples v. Guardian Auto Glass, LLC, Guardian Auto Glass seeks to enforce a non-compete contract against Robert Staples, who left to work for Glass America in Virginia.
The contract barred Staples from joining a competitor within a 100-mile radius for six months and included a forum selection clause that stated all disputes were to be filed in Michigan.
Perhaps not wanting to brave the harsh weather of the Motor City, Staples brought an action in Fairfax County seeking an order that the non-compete contract was unenforceable.
Now, after Guardian Auto Glass moved the dispute to Michigan, it may take months to resolve a dispute over a contract that was to expire in 180 days.
First, Guardian Glass counter-sued for breach of contract in Michigan, citing the forum selection clause. Then, Guardian Auto Glass sought a stay of the Virginia proceedings while the lawsuit proceeded in Michigan.
In a Virginia federal court, Staples argued that Guardian Glass was seeking to “run out the clock” on the six-month non-compete clause, thereby obtaining the benefit of their bargain.
Judge James Cacheris of the U.S. District Court for the Eastern District of Virginia disagreed, stating that the Michigan proceedings were unsurprising given the forum selection clause in the contract. He granted a stay in the Virginia litigation, in effect prolonging the litigation which is ongoing in Michigan.
My take: As you can tell, one procedural detour could slow the proceedings and render the non-compete provision moot. By the time that a judge issues a ruling, the contract may have run its course, reminding us of that old saying, all sound and fury signifying nothing. If the contract has a forum selection clause in another state, you will probably need to file in that jurisdiction for declaratory relief to avoid unnecessary delay.
It helps having a law firm that is experienced with non-compete litigation. If you need help with your non-compete contract, please do not hesitate to contact us at (540) 985-0098 or info@frithlawfirm.com.
Rob Dean
Rob Dean represents employees in claims involving non-compete agreements. Underlying his approach is a commitment to protect clients who have built a reputation in their profession. To speak with Rob about your employment contract, email him at rdean@frithlawfirm.com.
Topic: Top 10 Employee Mistakes That Lead to Litigation
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Topic: Should You Sign a Non-Compete Agreement?
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