Automile Holdings, LLC v. McGovernAnnotate this Case
The Supreme Judicial Court affirmed the judgment of the superior court concluding that Defendant committed a breach of an "anti-raiding" restrictive covenant entered into between between the parties but held that the equitable remedy fashioned by the trial judge, which expanded the restrictive covenant beyond its plain terms, constituted an abuse of discretion.
The restrictive covenant in this case prohibited Defendant from soliciting or hiring employees from Plaintiff, his former company, for a defined period of time. Defendant, however, hired employees from his former company in breach of the restrictive covenant. The superior court judge concluded that the restrictive covenant was enforceable and that Defendant had committed a breach of the covenant. The judge issued injunctive relief extending the length of the restrictive covenant for an additional year beyond the date provided for in the contract. The Supreme Judicial Court held (1) the restrictive covenant was necessary to protect a legitimate business interest; (2) Defendant committed a breach of the anti-raiding provision; but (3) the use of an equitable remedy to extend the restriction beyond the plain terms of the contract was not warranted without a finding that damages would be inadequate.