[CLBS] Can No Compete clause in an employment contract be rejected as to a former employer pursuant to 11 USC 365?

[Randal French]

See King, a JDP decision from 2009, attached hereto.  Maybe.

-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Jon Wilson
Sent: Thursday, June 11, 2015 9:31 AM
To: clbs at admws.idaho.gov
Subject: [CLBS] Can No Compete clause in an employment contract be rejected as to a former employer pursuant to 11 USC 365?



Does anyone have any experience, case law, etc which supports the proposition that a debtor can reject a "no compete clause" in a debtor's former employment contract pursuant to 11 USC 365?  Debtor files a chapter 7, debtor receives demand letter advising prior employer will enforce  its No Compete clause as to debtor and further threatens to take legal action against debtor's new employer.  Thanks for any input.

 

Jon

Jon R. Wilson

Attorney at Law

 

Wilson Law Offices, P.C.

4614 W. Emerald St.

Boise, ID 83706

Tel. (208)343-8400

Fax (208)424-5006

Email:  jon at boiselaw.org

 

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