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Recent news articles covered the lawsuit brought by Starbucks to enforce a non-compete agreement against a former Starbucks executive who is now employed by Dunkin’ Donuts. The parties settled the dispute and, according to news reports, Starbucks will be paid $500,000 and the executive will not actively work for his new employer until January 15, 2010.
Although settlement terms are not usually disclosed, according to Dallas employment lawyer Keith Clouse, many lawsuits brought to enforce covenants not to compete settle shortly after being filed. Mr. Clouse, whose law practice involves resolving non-compete disputes, notes that several factors may lead to early resolution in these cases. First, litigating non-compete disputes can be expensive for both sides. Non-compete cases are often fast-paced and typically require significant legal work in a short timeframe. Second, non-compete law is still evolving, so litigating these cases involves some uncertainty. Finally, the stakes are often high in these matters; parties do not want to risk losing by pursing litigation, so they may be more willing to settle.
To ask an employment law attorney to review a covenant not to compete or to discuss another non-compete issue with an employment law attorney, please contact the labor and employment lawyers at Clouse Dunn LLP at info@cdklawyers.com.
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