Hapney V. Central Garage, Inc.: Case Study

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Non-compete agreements are usually found in employments contracts in where a company wants to prevent their employees from working for a competing company. The focus of the non-compete agreement is to protect a company’s business interest and trade secrets but, a non-compete covenant must be laboriously drafted to follow the state’s regulation in order to be enforced in court. There is an enormous discrepancy when it comes to cases that deal with non-compete agreements since it deals with revising if the non-compete agreement was lawful to begin with; courts do not have a consistent approach to this. A lot of companies request the courts to enforce the covenant but, in most cases, the agreement is unenforceable due to the unethical and unlawful …show more content…

Central Garage, Inc. It was a challenging opinion to read since this case is old and, at that time, no Florida court had addressed the precise issue presented. The facts of the case are that Central Garage DBA Gulfcoast is a corporation that performs installations, repair and maintenance of auto air conditioners and auto accessories. On the other side, Hapney worked in many auto repair shops in the Tampa area where he learned to install and repair auto air conditioning systems. In 1988, he started working for Gulfcoast, where he entered into a non-compete agreement. The agreement stated the following: “I further agree that for a period of three years following the termination of my employment I will not offer, as an agent, employee, owner, or distributor, similar products or services on behalf of a competitor of the Company on the west coast of Florida from Crystal River to Naples or inland 100 miles.” A year after working with Gulfcoast, Hapney willingly ended his employment with Gulfcoast and a month later, Gulfcoast filed a lawsuit to enforce the covenant not to compete in where the trial court granted an injunction. As stated earlier, at the time of the case, there wasn’t many decisions in which the judge can cite and base his decision on. The judge for this case had to look for cases in other states to get an idea of cases with a similar issue, which makes it a tough case to decide on. Some of the issues that the appellate court focused on is that Hapney did not receive significant training on installing and repairing automobile air conditioning systems, he had no significant contacts with Gulfcoast’s customers, and he did not acquire trade secrets from Gulfcoast. These were three issues that were heavily discussed on the opinion and it amazes the kind of detail that they were covered with. The

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