Georgia Court Rules That Non-Compete Does Not Bind Seller’s Agents

Summary.  Marguerite and her two daughters were the members and managers of an LLC.  On behalf of the LLC, Marguerite negotiated and executed a contract to sell its assets to N&N Holdings.  The contract contained a covenant providing that “neither Seller nor its agents” would compete with, or solicit customers or employees of, the buyer during specified periods in a designated geographical area.  Within that period and area, however, Marguerite and her daughters created a new LLC.  It began competing with N&N which sued everybody — the seller, the new LLC, Marguerite, and her daughters — in a Georgia state court for violation of the covenant. 

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