ILNews

COA rules preliminary injunction wrongly extended noncompete agreement

Back to TopCommentsE-mailPrintBookmark and Share

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.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. IF the Right to Vote is indeed a Right, then it is a RIGHT. That is the same for ALL eligible and properly registered voters. And this is, being able to cast one's vote - until the minute before the polls close in one's assigned precinct. NOT days before by absentee ballot, and NOT 9 miles from one's house (where it might be a burden to get to in time). I personally wait until the last minute to get in line. Because you never know what happens. THAT is my right, and that is Mr. Valenti's. If it is truly so horrible to let him on school grounds (exactly how many children are harmed by those required to register, on school grounds, on election day - seriously!), then move the polling place to a different location. For ALL voters in that precinct. Problem solved.

  2. "associates are becoming more mercenary. The path to partnership has become longer and more difficult so they are chasing short-term gains like high compensation." GOOD FOR THEM! HELL THERE OUGHT TO BE A UNION!

  3. Let's be honest. A glut of lawyers out there, because law schools have overproduced them. Law schools dont care, and big law loves it. So the firms can afford to underpay them. Typical capitalist situation. Wages have grown slowly for entry level lawyers the past 25 years it seems. Just like the rest of our economy. Might as well become a welder. Oh and the big money is mostly reserved for those who can log huge hours and will cut corners to get things handled. More capitalist joy. So the answer coming from the experts is to "capitalize" more competition from nonlawyers, and robots. ie "expert systems." One even hears talk of "offshoring" some legal work. thus undercutting the workers even more. And they wonder why people have been pulling for Bernie and Trump. Hello fools, it's not just the "working class" it's the overly educated suffering too.

  4. And with a whimpering hissy fit the charade came to an end ... http://baltimore.cbslocal.com/2016/07/27/all-charges-dropped-against-all-remaining-officers-in-freddie-gray-case/ WHISTLEBLOWERS are needed more than ever in a time such as this ... when politics trump justice and emotions trump reason. Blue Lives Matter.

  5. "pedigree"? I never knew that in order to become a successful or, for that matter, a talented attorney, one needs to have come from good stock. What should raise eyebrows even more than the starting associates' pay at this firm (and ones like it) is the belief systems they subscribe to re who is and isn't "fit" to practice law with them. Incredible the arrogance that exists throughout the practice of law in this country, especially at firms like this one.

ADVERTISEMENT