The Eighth District Court of Appeal rejected an Iowa company’s noncompete agreement with an independent contractor last week, the National Law Review reports.
The worker, Vaught Elder, first was an employee and then became and independent contractor for Ag Spectrum Company in 2005. He terminated his IC agreement in 2012 and set up shop competing with Ag Spectrum, which later sued under the three-year noncompete clause. The court ruled the noncompete provision was unreasonable because it was not reasonably necessary to protect Ag Spectrum’s business, the provision burdened Elder out of proportion to the benefit to Ag Spectrum and there was no evidence that restricting Elder’s business would harm the public. Read more in The National Law Review.