Macgowan v. Town of Castle Rock

**Macgowan v. Town of Castle Rock: Non-Compete Agreement Enforced** This case involved a dispute over a non-compete agreement in the funeral industry. The plaintiff, Macgowan, had a contract that prevented them from operating a competing funeral business in a specific area. When Macgowan began working with Lionel Fairbanks Mortuary in that territory, it violated their non-compete clause. The court ruled in favor of the plaintiff who was enforcing the non-compete agreement. The judge interpreted the contract's restrictions broadly, deciding that any funeral business operations in the specified area were prohibited. The court awarded $750 in damages and issued an injunction, which is a court order stopping Macgowan from continuing to violate the agreement. **What this means for workers:** This case shows that courts may enforce non-compete agreements even when the restrictions seem broad. Workers should carefully read any non-compete clauses before signing employment contracts, as these agreements can limit where and how they work after leaving a job. The relatively small damage award suggests that while the court enforced the contract, the actual financial harm was limited. Workers facing non-compete issues should understand that these agreements can be legally binding.