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COA rules preliminary injunction wrongly extended noncompete agreement

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In reviewing a dispute over the terms of a noncompete agreement, the Indiana Court of Appeals reminded the trial court that a preliminary injunction has limits.

Even though the Court of Appeals affirmed the preliminary injunction against Robert Kuntz, it determined the trial court had erred when it extended the duration of the noncompete and awarded attorney fees.

Kuntz sold his business repairing electric auto parts and leased the company’s property to JS Hare Inc. in 2007. At that time, Kuntz entered into a noncompete agreement prohibiting him from doing similar work for the next seven and a half years.

In December 2011, JS Hare sold its assets to EVI, LLC. Several months later, after EVI became concerned that Kuntz was violating his noncompete, it filed suit and requested a preliminary injunction.

The Court of Appeals ruled in Robert Kuntz, Kunodu, Inc. and B-K Interests, LLC v. EVI, LLC, 02A03-1301-PL-14, that the trial court did not abuse its discretion in granting a preliminary injunction against Kuntz.

However, the COA pointed out the purpose of a preliminary injunction is to preserve the status quo until the court can issue a ruling on the dispute.

Therefore, since the last uncontested position of the parties was that the noncompete agreement expired in October 2014, the trial court should not have tacked on additional months. Also, since neither party had prevailed with a judgment or settlement that grants the relief sought, the lower court erred by awarding attorney fees to EVI.

 

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  1. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  2. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  3. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

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  5. Here's an idea...how about we MORE heavily regulate the law schools to reduce the surplus of graduates, driving starting salaries up for those new grads, so that we can all pay our insane amount of student loans off in a reasonable amount of time and then be able to afford to do pro bono & low-fee work? I've got friends in other industries, radiology for example, and their schools accept a very limited number of students so there will never be a glut of new grads and everyone's pay stays high. For example, my radiologist friend's school accepted just six new students per year.

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