In the ongoing scrutiny of covenant non-compete (non-compete) clauses by Georgia’s courts, a clear trend has emerged of judges preferring to apply local legislation over other states’, even when a contract specifies otherwise. This predilection was highlighted recently in the case of Motorsports of Conyers, LLC v. Burbach, Case No. S22G0854, decided on September 6, 2023.
As widely observed, Georgia courts have traditionally refused to uphold non-compete clauses that did not meet a precise set of standards. Even clauses regulated under other states’ laws failed to bypass Georgia’s stringent tests for enforceability.
This rigid approach, however, has been somewhat relaxed following statutes implemented in 2011. Intended to allow a more liberal interpretation of non-competes, these laws were put to the test by the Georgia Supreme Court during Motorsports of Conyers, LLC v. Burbach. The implications of this case will undoubtedly shape how non-compete clauses are enforced in the state going forward.
Tracking the developments of this case and others will be essential for any legal professional working with non-compete clauses in Georgia. As this state continues to apply its own laws during the interpretation and enforcement of such contract terms, securing expert legal advice will likely prove indispensable for protecting a company’s rights and interests.
For further information on this topic, visit JD Supra’s article on recent Georgia law developments.