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Court Watch
Covenants Against Competition Find Disfavor In Recent Cases
A state appellate court case from North Carolina and a U.S. Court of Appeals case from Minnesota have considered noncompetition clauses in franchise agreements and found them wanting.
Both Outdoor Lighting Perspectives Franchising, Inc. and Novus Franchising, Inc. have been quite active in seeking to enforce the noncompetition provisions of their franchise agreements against former franchisees. Aspects of two of these cases have recently been decided. In Novus Franchising, Inc. v. Dawson, et al, 725 F.3d 885, CCH Bus. Fran. Guide '15,110 (8th Cir. Aug. 5, 2013) the franchisor, Novus, appealed a U.S. District Court's refusal to enforce the covenant against competition contained in the defendant's franchise agreement after the agreement was terminated. The franchisor did not terminate the franchise agreement until a year after the defendant franchisee stopped paying royalties and did not file suit to enforce the post-termination provisions of the agreement until 16 months after the royalties stopped. The franchisor's motion for preliminary injunction seeking, among other things, to enforce the noncompetition covenant was filed over 17 months after royalty payments ceased. The part of the motion seeking enforcement of the noncompetition covenant was denied. Novus appealed that part of the district court's decision to the Eighth Circuit.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.