Trial court properly granted preliminary injunction in favor of former employer seeking to enforce terms of non-compete agreement

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Sherri Gleeson appeals the trial court’s grant of her former employer Preferred Sourcing, LLC’s (“Preferred”) motion for a preliminary injunction against her, which sought to enforce the terms of a non-compete agreement that she signed.
Conclusion (slip op. at 27):  We hold that the trial court properly granted the preliminary injunction in favor of Preferred regarding paragraph 5(b) of the Agreement. In addition, we hold that the trial court abused its discretion in failing to require Preferred to post security pursuant to Trial Rule 65(C).  Affirmed in part and reversed in part.
Key Analysis (slip op. at 25, 26-27):  The Indiana Supreme Court recently held that noncompetition agreements are enforceable, even in the face of apparently major breaches by the employer . . . The injunction, in essence, prohibited Gleeson from working at QCS, meaning a loss in salary to Gleeson, which is not insignificant. As such, the trial court should have required Preferred to post security.

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Bose McKinney & Evans LLP is a business law firm, headquartered in Indianapolis, Indiana, serving both publicly held and privately held businesses, governmental entities and high-growth industries. Our clients include Fortune 100 companies, international manufacturers, national and regional financial institutions, agribusinesses, sports teams, university-incubated start-ups, media, utilities, cities and schools, to name a few. We strive to build strong relationships with our clients as key business advisors, to exceed expectations in the quality of our work, to be knowledgeable about our clients’ businesses and sectors, to be responsive to service needs and to continually seek to improve the delivery of client services. Our ultimate focus is on our clients.
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