Lucht Concrete - Negotiation, Contract, and Sales

Question 1

Facts

Answer 1

Business out of Denver- Looking to expand to Summit County and hired Horner to lead that change
Horner: Had to sign a non-compete two years after starting
Agreement did not offer benefits, or any type of compensation
Horner left and worked for a company that ended up going into the concrete business, in the same area and shared customers

Question 2

Procedural History

Answer 2

Trial Ct granted SJ against Lucht on Br/K (holding no consideration). And at bench trial, Lucht lost other claims. Lucht appealed.

Question 3

Issue

Answer 3

Does continuing employment of existing at-will employee provide adequate consideration to support a non-compete agreement?

Question 4

Holding

Answer 4

Yes, an employer that forbears from terminating an at-will employee is forgoing a legal right (to fire EE at any time for any reason) and thus it constitutes adequate consideration for the employee’s noncompete.

Question 5

Business Key Lesson

Answer 5

Horner, ultimately won- ER should have made EE sign the contract day one Make sure to provide something in exchange- this looks at the consideration- you have to get something for something