ADP, LLC v. Eric Manchir
Case Details
- Judge(s)
- Chief Judge D. Michael Swiney
- Status — whether other courts must follow this ruling
- Published
- Procedural Posture — the stage the case had reached
- Summary judgment granted by trial court; affirmed on appeal
Related Laws
No specific laws identified for this ruling.
Claim Types
Outcome
ADP won summary judgment against Eric Manchir for breach of a non-competition restrictive covenant agreement. The court enforced the 12-month non-compete clause and awarded ADP specific performance plus attorney's fees and costs.
Excerpt
This appeal concerns an employment-related restrictive covenant. Eric Manchir ("Manchir") worked as a sales manager for ADP, LLC ("ADP"), a company that deals in human resources and business outsourcing matters. As a prerequisite to obtaining restricted stock options from ADP, Manchir consented to a restrictive covenant agreement ("the Agreement"). The Agreement contained, among other things, a non-competition clause extending to twelve months after Manchir left ADP. New Jersey law governs the Agreement. Manchir later resigned from ADP and went to work for an ADP competitor, Paycor, Inc. ("Paycor"). ADP sued Manchir in the Chancery Court for Davidson County ("the Trial Court") for breach of contract and sought specific enforcement of the Agreement. ADP filed a motion for summary judgment, which the Trial Court granted. The Trial Court also awarded ADP, pursuant to a provision in the Agreement, attorney's fees and costs. Manchir appeals. We hold, inter alia, that the Agreement is reasonable and enforceable under New Jersey law, that Manchir breached the Agreement, and that specific performance is an appropriate remedy. We affirm the judgment of the Trial Court.
What This Ruling Means
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