Monday, June 20th, 2016 | Author:

“No bond” provision does not render non-compete to be unenforceable

People often inquire about whether their non-compete agreements are enforceable because there is a single provision that contradicts § 542.335, Fla. Stat.  In the recent case of Smart Pharmacy, Inc. v. Vicarri, 41 Fla. L. Weekly D1274, fn. 4 (Fla. 1st DCA May 31, 2016), a former employee made that very argument on the basis that the contract provided for “no bond” in contravention to the statute.  The Court noted that the statute does not render the non-compete to be unenforceable.  Rather, that particular provisin was unenforceable.  The court also noted that the contract contained a severability clause that deemed only that provision unenforceable while the remainder of the agreement remained intact.  There are two important lessons from this case:  (1) a former employee is going to have to post a bond to obtain an injunction (which could get expensive for the employer) even if the contract says “no bond” and (2) a “no bond” provision does not cause the non-compete agreement to be void.

This article does not constitute legal advice or the formation of an attorney-client relationship, and is not for re-publication without express permission of the author.

Brad Kelsky