Non-solicitation Clauses: Thou Shalt not Solicit

It was noted in Part 1 of this series that Courts prefer the use of non-solicitation clauses to the use of non-competition clauses. As stated, Courts will engage in the following three-part analysis when tasked with determining the enforceability of non-competition clauses in associate agreements:

  • Whether there is a proprietary interest worthy of protection;
  • Whether the spatial (geographical) and temporal (time) aspects of the clause are reasonable; and
  • Whether, in contrast, a non-solicitation clause would adequately protect the principal’s interests. As was noted, in most cases, this is the factor that defeats the enforceability of an otherwise reasonably drafted non-competition clause.

What is a non-solicitation clause? Continue reading

Tightening the Shackles: Non-competition Clauses in Agreements of Purchase for Dental Practices

In our last post, we discussed the general prohibition against the enforceability of non-competition clauses in agreements between associates and principals. However, as alluded to in that post, non-competition clauses are also used in agreements of purchase for dental practices, and the Courts have, in contrast, displayed a willingness to enforce non-competition clauses in such transactions. Continue reading