Stephen Deese v Genscape, Inc., 12-CI-1784 (Jefferson Circuit Court 2012)

Employee work for over a decade for employer.  At some point post-employment, employer requested a non-compete be executed by the employee.  Some stock options were awarded as part of that agreement.  Years later employer sought to down-size and terminated employee under a reduction in force.  Employee sought out new employment and was provided a job offer by a Fortune 500 company which arguable did similar work as former employer.  Former employer communicated the existence of an enforceable noncompete to employer who offered job who then withdrew the job offer. The noncompete essentially restricted employee’s future work prospects by geographic area to only 1 of seven continents.  Employee file for a temporary restraining order and a declaration judgment action seeking a court ruling that the noncompete obtained post-employment was not enforceable as a result of the reduction in work force termination of employee and because the geographic restriction was so unreasonable.  The trial court denied the request for temporary restraining order holding that the employee had not shown that his rights were being or would be violated by employer, and after an extensive evidentiary hearing the trial court issued an opinion and order that held that employee could not establish that his rights are being or will be violated by the former employer as it had the right to seek to enforce its agreements with former employees.