« on: January 16, 2006, 06:43:46 PM »
I'm doing a practice research memorandum and I've been staring at this contracts fact pattern for hours and have no idea where to start reserching or what sources to use or what topics to start looking for. State or Fed cases? How would I go about doing this? Any bit of help would be appreciated. Thanks.
In January of 2004, John Smith, child prodigy who excelled in the field of computer science and technology, joined “Website Designs” (“WD”) company located in Jamaica, Queens at age 21. He signed an employment agreement that contained a restrictive covenant stating as follows: “John Smith agrees that if he should terminate his employment with Website Designs, or if Website Designs should terminate his employment for cause, then he is restricted from the practice of designing website in a 15 mile radius from the address of Website Designs for a period of 5 years.”
Mr. Smith was viewed by WD as someone with potential for moving up in the company. However, his primary responsibility was taking telephone orders from customers, which did not help him understand the needs of the customers. After staying with the company for only one year, Mr. Smith went to work for “Computers Unlimited” (“CU”), which is another company that designs website. CU is located 14 miles from WD and is located over the border of Queens, but in New Hyde Park, Nassau County. Beginning in January 2005, Mr. Smith took a creative position at CU. He began researching and designing new approaches to creating websites that are cost-efficient for clients.
When WD executives heard that Mr. Smith was on the verge of creating possibly a new product, it sent Mr. Smith a letter indicating that it intends to take him to court to enforce the restrictive covenant. What is the likely outcome of the case, would the cct uphold agreement in whole or in part?