In its ruling, the Appellate Division noted that the developers had demonstrated that Hempstead's restrictive covenant
was "of no actual and substantial benefit to the Town," and Hempstead officials had "offered no explanation to rebut this showing.
Although an employer may consider a restrictive covenant
to be reasonable when the employee leaves, it must also have been reasonable at the time the employee entered into the employment contract and was said to be bound by the restriction.
The court in BDO Seidman concludedBDO had not obtained a legitimate interest in clients brought to BDO by the employee sufficient to enforce a restrictive covenant
where BDO had not expended its resources to create or maintain goodwill with those clients.
Miller's real estate agent, an independent contractor associated with Coldwell Banker Residential Brokerage, emailed the restrictive covenant
to the prospective buyer's sales agent, prompting the buyer to withdraw from the sale.
Contacting the person having the benefit of the restrictive covenant
is rarely a viable option.
It is easy for developers to forget that those who have the benefit of restrictive covenants
can cause them no end of headaches and, as such, their objections should be dealt with before works begin.
The new legislation will make an already complex area of law even more complicated and businesses alone will not be able to make the decision about whether their restrictive covenants
will stand up.
When an engineering control is necessary, a restrictive covenant
must always be imposed to ensure that the engineering control is properly monitored and maintained, and that the department has access to inspect the engineering control.
are important features of many property transactions and it is critical that buyers are aware of any that are in place before they complete their purchase.
A restrictive covenant
offends public policy as a restraint of trade and therefore will be prima facie void from the beginning unless a court concludes that it is reasonable as between the parties.
Whether or not a restrictive covenant
can be enforced depends on a number of things, not the least of which is the jurisdiction in question.
While TEI acknowledged the desirability of legislation to clarify the treatment of such amounts, it asserted that the proposed restrictive covenant
provisions are overbroad.
When mental health professionals join a group practice, their employment contract may include a restrictive covenant
that is intended to limit their ability to compete with the group practice for a period of time should the employment relationship end.
In addition, the court concluded that the two-year period for the restrictive covenant
Then, with some older houses, there is also often a restrictive covenant
or two knocking around.