Virginia Supreme Court Rules Enforceability of Non-Competes Cannot Be Determined in a Factual Vacuum

A recent Supreme Court of Virginia decision will make it more difficult to challenge non-compete restrictions through early pleading challenges.

In Assurance Data, Inc. v. Malyevac, the Supreme Court of Virginia reversed the Circuit Court of Fairfax County, which sustained a demurrer, and, in doing so, determined the enforceability of certain restraints on competition contained in an employment agreement on the pleadings. In remanding the action back to the lower court, the Supreme Court of Virginia held that any finding regarding the enforceability of the agreement must be made on the facts, and certainly not at the demurrer stage.

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