Duong v. Fielden Hanson Isaacs Miyada Robison Yeh, Ltd.

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Justia Opinion Summary

The Supreme Court affirmed the order of the district court granting a preliminary injunction based on a blue-penciled noncompetition agreement, holding that Golden Road Motor Inn, Inc. v. Islam, 376 P.3d 151, 159 (Nev. 2016), does not prohibit a district court from blue-penciling an unreasonable noncompetition agreement if the agreement allows for it.

Defendants signed an employment contract containing a blue-penciling provision providing that, if any provision is found to be unreasonable by the court, the provision shall be enforceable to the extent the court deemed it unreasonable. When Defendants quit their employment and began work elsewhere, Plaintiff filed a complaint to enforce the agreement, alleging that Defendants violated the agreement's noncompetition clause. The district court found that the noncompetition agreement was overbroad and blue-penciled it. The court then granted Plaintiff's motion for a preliminary injunction to enforce the revised agreement. The Supreme Court affirmed, holding that because the noncompetition agreement had a blue-penciling provision, the district court did not abuse its discretion by blue-penciling the noncompetition agreement and enforcing the revised agreement.

Primary Holding
The Supreme Court affirmed the district court's order granting a preliminary injunction based on a blue-penciled noncompetition agreement, holding that Golden Road Motor Inn, Inc. v. Islam, 376 P.3d 151, 159 (Nev. 2016), does not prohibit a district court from blue-penciling an unreasonable noncompetition agreement if the agreement allows for it.

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