Dozier Miller Blog

Non-compete Agreements in North Carolina

How far can a judge go in striking unreasonable terms?

The North Carolina Supreme Court recently clarified the limited power judges have to strike unreasonable terms in non-compete agreements.1 Citing historic case law, the Court made clear that judges are not at liberty to rewrite contracts for the parties. There remains one exception to this general principle known as the “blue-pencil rule.” This rule permits the Court not to enforce certain sections of an agreement that it finds to be unreasonable.

The blue-pencil rule does not allow a judge to rewrite the terms of a contract or cross out a term to make a new provision. This rule simply allows the judge to refuse to enforce certain sections of a noncompete agreement that are unreasonable.

The blue-pencil rule is most commonly used with territorial restrictions that attempt to prevent a former employee from working in certain geographic areas. If several different territorial areas are listed in distinct and separate provisions, the court can “blue-pencil” or refuse to enforce specific territories that are overly board.  However, if only one restricted territory is listed in the agreement, the judge has no power to revise that provision.

Noncompete agreements are rarely straightforward, and there are often many loopholes that can leave them unenforceable. If you have questions about a noncompete agreement, attorney Adam Hocutt has experience litigating these issues in North Carolina courts.

1. Beverage Sys. of the Carolinas, LLC v. Associated Bev. Repair, LLC, 2016 N.C. LEXIS 177 (N.C. Mar. 18, 2016)

DM-_Resolution

CATEGORIES

Contact an Attorney

Our attorney offer specialized guidance and representation in a variety of practice areas.

Home » Business Law » Non-compete Agreements in North Carolina
Group 94

REMEMBER: Always speak with your own attorney

This information is provided for informational purposes only; it is not offered as and does not constitute legal advice.

Schedule a Consultation

At Dozier Miller Law Group we value taking the time to thoroughly discuss your unique legal challenges.

Our lawyers represent many areas of expertise, but if we don’t have the service you need, we’ll help you find an expert whose skills match your situation.

Contact Us

More Insights and Resources

Learn more about what to expect when facing a family law dispute in Charlotte, North Carolina from Family Law attorneys at Dozier Miller Law Group