Mergers Can Start Noncompete Clocks, Ohio Court Says

Law360, New York (May 24, 2012, 9:49 PM EDT) -- The Ohio Supreme Court on Thursday ruled that a merger sets a noncompete agreement in motion when the deal makes no provision for its continuation after a merger, refusing to let an insurance services provider enforce its predecessors' contracts with employees.

In a 4-3 decision, Ohio's highest court concluded that Acordia LLC could not enforce two-year noncompete agreements against employees who jumped to a competitor because the contracts they signed with the company's predecessor did not contain language extending the employees' obligations to its successors or...
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