Non-Competes must be Signed by BOTH PARTIES
Non-Competes must be Signed by BOTH PARTIES
The Alabama Supreme Court held a non-compete unenforceable because one of the parties failed to sign it. Amanda Howard Real Estate, LLC v. Lee, et al. App. No. 1210193 (Ala. 2023).
Litigating non-competes in Alabama has always been a detail-oriented and high-stakes affair, and this case further proves how even basic mistakes can completely invalidate an otherwise-enforceable non-compete agreement.
The Presumption Against Non-Competes: A Starting Block
Imagine you're at the starting line of a race, and the track ahead is fraught with hurdles. That's the initial stance Alabama law takes towards non-compete agreements: they're presumed void. Why? Because there's an inherent tension between an individual's right to work and a business's desire to protect its interests. In the Alabama, the race isn't flat for those seeking to enforce a non-compete—it starts on an uphill.
Exceptions to the Rule: Finding the Legal Lane
However, as any seasoned track athlete knows, there are lanes that provide the best footing. Similarly, Alabama courts recognize paths to uphold non-compete agreements if they're carefully carved out to protect legitimate business interests. Think of these interests as the inside track, which is only accessible if you meet the stringent requirements set forth by state statutes.
The Case at Hand: A Missed Handoff in Howard Real Estate, LLC v. Lee
Our legal relay brings us to a pivotal case: Howard Real Estate, LLC v. Lee. Here, the baton drop occurred when one party failed to sign an addendum containing the non-compete clause. Despite all other documents being signed and actions aligning with the agreement, this one oversight was like missing a baton in a relay race—the whole team gets disqualified. In legal terms, it rendered the non-compete agreement invalid.
Technicalities and Tightropes: The Fine Print That Can Trip You Up
This case underlines the numerous "exceptions to exceptions" in non-compete law, much like a tightrope walker's performance being flawless until a sudden gust of wind. An agreement that seems enforceable can be toppled by what appears to be a minor technicality.
The High Stakes of Enforcement: A Fiscal Footrace
Enforcing non-competes in Alabama can feel like a high-stakes poker game, where the pot is both costly and contentious. Legal battles over non-compete clauses can range broadly in cost, often stretching from the tens to hundreds of thousands of dollars, depending on the case's complexity and duration.
The Finish Line: A Call to Action for Employers and Employees
As we sprint towards the finish line, remember that whether you're an employer drafting the track's boundaries or an employee racing towards your career goals, precision is key. Missteps can be costly, and knowing the legal hurdles is crucial.
If you're contemplating constructing a non-compete agreement or find yourself entangled in one, reach out to The Watson Firm. We are "The Entrepreneur's Law Firm," well-versed in converting complex legal challenges into victories. Contact us to set up a consultation and ensure that your non-compete agreements stand the test of Alabama law.