Systems and Software, Inc. v. Barnes
Vermont Supreme Court
886 A.2d 762 (2005)
Randy Barnes (defendant), a sophisticated consultant, signed a non-compete agreement upon joining Systems and Software, Inc. (plaintiff), a company designing customer-information systems for utility providers, as regional vice president of sales; the agreement barred him from associating with any Systems competitor during employment and for six months afterward. About two years later, Barnes left and started a consulting group whose sole client was a Systems competitor; Systems sued for an injunction enforcing the non-compete, and Barnes offered no proof of hardship beyond a bare assertion that he would be unable to work for six months. The trial court granted Systems the injunction, and Barnes appealed.
Whether a non-compete agreement is enforceable if the restraint is no greater than needed to protect the employer's legitimate interest and if the employer's need is not outweighed by the hardship to the employee and the likely injury to the public.