Non-compete clauses unenforceable as contrary to public policy

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Appellant/Cross-Appellee-Defendant/Counter-Plaintiff, Mercho-Roushdi-Shoemaker-Dilley Thoraco-Vascular Corporation (MRSD), appeals from the trial court’s summary judgment ruling that the non-compete clauses signed by Appellees/Cross-Appellants-Plaintiffs/Counter-Defendants, James W. Blatchford, III, M.D. (Blatchford) and Eve G. Cieutat, M.D. (Cieutat), are unenforceable. Blatchford and Cieutat cross-appeal, arguing that the trial court erred in granting summary judgment in favor of MRSD on Counts I-VII of Blatchford and Cieutat’s Complaint. MRSD raises several issues on appeal, which we restate as the following single issue:

(1) Whether the trial court erred in granting summary judgment in favor of Blatchford and Cieutat with regard to the enforceability of the non-compete clauses.

Blatchford and Cieutat raise several issues on cross-appeal, which we restate as the following single issue:

(2) Whether the trial court erred in granting summary judgment in favor of MRSD on Counts I-VII of Blatchford and Cieutat’s Complaint.

Conclusion (slip op. at 22):  We conclude that the trial court did not err in granting summary judgment in favor of Blatchford and Cieutat regarding the enforceability of the non-compete clauses, nor did the trial court err in granting summary judgment in favor of MRSD on Counts I-VII of Blatchford and Cieutat’s Complaint. Affirmed.

Key Analysis (slip op. at 19):  Blatchford and Cieutat cite the live or affidavit testimony of seven Terre Haute doctors who believe that enforcement of the non-competition agreements would have tended to injure the Terre Haute community. MRSD has failed to direct us to any conflicting evidence that it designated to the trial court. Because MRSD has not designated any evidence contradicting Blatchford and Cieutat’s own evidence that tends to show that enforcement of the non-compete clauses would have been contrary to public policy, we affirm the trial court’s conclusion that the non-compete clauses are unenforceable.

About Bose McKinney & Evans LLP

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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