Whitten v. Malcolm - 249 Neb. 48, 541 N.W.2d 45 (1995)

Rule:

As a general rule, a covenant not to compete may be valid only if it restricts the former employee from working for or soliciting the former employer's clients with whom the former employee actually did business and has personal contact.

Facts:

Plaintiff, a dentist, employed defendant in his dental center as a dentist. Defendant signed an employment agreement which contained a noncompetition clause which prohibited defendant from practicing dentistry within a 25-mile radius for one year. Defendant then left to practice with a competing dentist in the same town. Plaintiff brought an action to enforce the noncompetition clause and requested injunctive relief and damages for breach of contract. The trial court denied both the injunction and damages. Plaintiff appealed.

Issue:

Was the noncompetition clause enforceable? 

Answer:

No.

Conclusion:

The court affirmed, holding that the noncompetition clause was unreasonable and not enforceable because it did not limit itself to defendant's client base, and it was not the court's function to reform unreasonable covenants for the purpose of making them enforceable.