Legal Question in Employment Law in Georgia

Non-Compete Contract and Clean Hands Doctrine

I have worked in the same industry for 27 years. 18 months ago I went to work for a new company (in the same industry). As a condition of employment I signed a Non-Compete contract since the proposal from the employer was one that was both lucritive and spanned a period of 6 years. I was informed on the last day of November (18 months after hire)that my position was being cut yet 3 weeks prior to that I was given a beefed up Non- compete to sign. #1 will an over broad non-compete hold up in Georgia and #2 Would the Clean hands doctrine apply since it seems so obvious that this was a tactic to funnel me into a corner? I'm now in financial jeopardy and don't know where to turn. Any advice?


Asked on 2/02/07, 11:10 am

4 Answers from Attorneys

Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Non-Compete Contract and Clean Hands Doctrine

#1 If a non-compete is legally overbroad, then of course it is unenforceable. However, I can't tell you if your non-compete is overbroad. You would need to have an attorney look over it.

#2 If you were an employee at-will, your employer may continually ask you to sign new non-competes in consideration for your continued employment. Unclean hands would not apply here.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 2/02/07, 11:16 am
SHERRY RAGOLE RAGOLE & ASSOCIATES, LLC

Re: Non-Compete Contract and Clean Hands Doctrine

You need to employ an experienced plaintiff's employment law attorney to determine whether your employment circumstances gives you grounds for a lawsuit. They will also be able to adivse you regarding the non-compete agreement. Avoid discussion of your case with anyone prior to obtaining representation.

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Answered on 2/02/07, 3:06 pm
Jeff Kent Kent & Merritt, P.A.

Re: Non-Compete Contract and Clean Hands Doctrine

I agree and disagree with Glenn on this one (sorry, Glenn, I usually agree with you completely). Whether or not the non-compete is enforceable is a very fact-specific thing, and you should get an experienced attorney to review it for you.

As to the issue about which I disagree with Glenn, there is some VERY limited authority for an allegation of fraud if you can show that the employer knew that he was going to let you go when he got you to sign the new agreement.

Feel free to contact me if you have questions.

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Answered on 2/02/07, 3:31 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Non-Compete Contract and Clean Hands Doctrine

To add to the two substantive responses (Mr. Lyon, Mr. Kent) that had good points, I also believe that if the employer KNEW you were going to be terminated, you would have a possible defense, whether it be the breach of duty of good faith, unclean hands (for an action to enforce the agreement), or in an extreme case, fraud in the inducement. You'll need strong evidence. Keep in mind that testing the theory may lead to trouble for a future employer. Depending on the money at issue, you may want to consider seeking a declaratory judgment that the agreement is unforceable.

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Answered on 2/02/07, 6:37 pm


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