New York Federal Court Denies Injunction to Enforce Restrictive Covenants Against Terminated Employee

Garrod, a salesman for more than 25 years in the field of elastomeric precision products (EPP), was terminated in mid-2012 after spending an aggregate of a dozen of those years working for manufacturers of EPP parts Fenner and a company acquired by Fenner.

He had signed both employers’ agreements containing non-compete and customer non-solicitation clauses–which appeared reasonable on their face–and Pennsylvania choice-of-law provisions. After Fenner discharged him, he was hired by Mearthane, another EPP company. When he began calling on Fenner’s customers, Fenner sued Mearthane and him in the U.S. District Court for the Western District of New York, seeking to enforce the restrictive covenants contained within the employment agreements.

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