Eleventh Circuit Enforces Non-Compete Covering North America and Europe, but Finds Former Employer is Not Entitled to Damages

On July 30, 2009, the Eleventh Circuit reversed a district court decision granting over $1.6 million in damages to a former employer, but upheld an injunction against the former employee, enforcing a non-compete agreement. In Proudfoot Consulting Co. v. Gordon, No. 09-14075, Judge Trager issued an opinion finding that a non-compete agreement that prevented a former Project Director from competing in North America and any other territory to which the employee had been assigned during his employment for six months following his employment was enforceable under Florida law.

As Project Director, the former employee, Gordon, managed client relationships and was the most senior employee who had routine client contact. One of his duties was to attend weekly meetings that reviewed all of Proudfoot’s North American projects. In addition, Gordon visited Canada once on behalf of Proudfoot. After resigning from Proudfoot, Gordon immediately began working for a direct competitor, the Highland Group, but Gordon worked exclusively in Canada for the first six months of his employment. After joining the Highland Group, Gordon secured a substantial project for the Highland Group from a client that did business with Proudfoot’s European sister company.

To read this blog post click here