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District Court Interprets Kentucky Franchise Covenants Not-to-Compete
In Papa John's International, Inc. v. Rezko et al., 2006 WL 1697134 (N.D. Ill.), the U.S. District Court for the Northern District of Illinois was called upon to determine whether a post-term covenant not-to-compete was reasonable in scope. The defendant alleged that the covenant would bar him from the restaurant business nearly everywhere in the country. In the limited procedural posture of the case (a motion to dismiss), the court allowed the claim of unreasonableness to go forward.
Rezko, through a number of companies, was a long-time franchisee of Papa John's, with numerous stores in Illinois and Michigan. Rezko personally signed the franchise and owner agreements for each store. Those agreements contained a covenant not-to-compete. The covenant precluded Rezko for a period of 2 years after termination or expiration from engaging in competitive activities within a 10-mile radius of Rezko's particular restaurant or any location where Papa John's or any of its franchisees conduct a Papa John's business. Rezko also signed separate owner's agreements, which contained an identical covenant not-to-compete. The owner's agreement also has a clause stating that the owner agrees that the 'covenants and agreements … are, taken as a whole, reasonable with respect to … geographic scope and duration, and no party shall raise any issue of the reasonableness of the areas, activities or duration of any such covenants in any proceeding to enforce any covenants.'
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.