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The permissible scope of a covenant not to compete ancillary to the sale of a business is not as narrowly limited. You can see our earlier blog posting on this issue here.
Even where such a sale involves a list of specifically identified customers, there may be legitimate reasons why the purchaser must also restrict the seller from competing in a reasonably defined geographic area in order to protect the benefit of his bargain. However, such reasons must be shown in order to establish the reasonableness of a geographic restriction. There must be evidence in the record to support the contention that the seller must be restrained from competing in areas which he served prior to the sale in order to protect the value of the goodwill and trade name purchased.
Even where such a sale involves a list of specifically identified customers, there may be legitimate reasons why the purchaser must also restrict the seller from competing in a reasonably defined geographic area in order to protect the benefit of his bargain. However, such reasons must be shown in order to establish the reasonableness of a geographic restriction. There must be evidence in the record to support the contention that the seller must be restrained from competing in areas which he served prior to the sale in order to protect the value of the goodwill and trade name purchased.
If you need help drafting or determining the validity of a Nebraska non-compete agreement you should consider contacting Angela Madathil. Madathil Law Office specializes in employment law in Nebraska, and offers free consultations.
Madathil Law office serves Nebraska employment clients in Omaha, Lincoln, Lancaster County, Douglas County, Otoe, and Cass County Nebraska. If need a Nebraska employment lawyer, consider contacting Angela Y. Madathil and the Madathil Law Firm.
Contact us at angela@madathil-law.com or by telephone at 402.577.0686. The firm offers free consultations. For more information feel free to look at our website www.madathil-law.com.
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