Steamatic of Kansas City Inc specialized in cleaning and restoring property damaged by fire, smoke, water, or other elements. It employed Rhea as a marketing rep. His duties included soliciting customers, preparing cost estimates, supervising restoration work and conducting seminars. At the time of his employment, Rhea signed a noncompetition agreement prohibiting him from entering into a business in competition with Steamatic within 6 countries of the Kansas City Area for a period of 2 years after the termination of his employment with Steamatic. Late in 1987, Rhea decided to leave Steamatic. In contemplation of his move, he secretly extracted the agreement restricting his postemployment activity from the company's files and destroyed it. Steamatic learned of this and discharged Rhea. Steamatic filed suit against Rhea to enforce the noncompetition agreement when it learned that he was entering a competing business. Will the noncompetition agreement be enforced?
I am not a lawyer, but I can provide some general information on noncompetition agreements. Whether or not the noncompetition agreement will be enforced depends on various factors including the jurisdiction in which the agreement was made and the specific terms of the agreement. In this case, it seems that Rhea signed a noncompetition agreement with Steamatic of Kansas City Inc, which prohibited him from entering into a business that competes with Steamatic within a certain geographic area and for a specific period of time after leaving the company.
However, it's worth noting that Rhea secretly extracted and destroyed the agreement before leaving the company. This action by Rhea may have legal implications, and it could weaken Steamatic's ability to enforce the agreement. In general, the enforceability of noncompetition agreements can be affected by factors such as the reasonableness of the restrictions, the legitimate business interests of the employer, and whether the agreement was properly executed and acknowledged by both parties.
To determine the enforceability of the noncompetition agreement in this specific case, it would be necessary to consult with a legal professional who is familiar with employment laws in the relevant jurisdiction and can thoroughly review the terms of the agreement, including any applicable state or local laws that may impact its enforceability.