Malice v. Coloplast Corp.

The arbitrator did not manifestly disregard the law in determining that the non-compete and non-solicit covenants in the defendant's executive employment agreement were reasonable and enforceable.

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Louis Malice, Jr. appeals from the superior court’s confirmation of an arbitrator’s award in favor of his former employer, Coloplast Corporation, on the ground that Malice violated restrictive covenants in his employment contract.1 Because we find no evidence that the arbitrator manifestly disregarded the law, we conclude that the superior court properly confirmed the award and affirm. The record shows that Coloplast Corporation does business world-wide, providing products and services for the medical profession, including wound care, skin care, ostomy supplies, incontinence products, and breast care. Malice, a civil engineer, was originally hired in 1985 as a project engineer by Coloplast’s predecessor company, which manufactured and sold post-mastectomy products. Malice eventually became president of Coloplast’s Breast Care Division. In October 2001, he signed an executive employment agreement. The agreement includes several restrictive covenants, including the non-compete and non-solicit covenants at issue in this appeal, and various other provisions designed to protect Coloplast. The agreement also includes an arbitration clause, which provides that all disputes will be submitted to arbitration under the rules of the American Arbitration Association-Commercial Division.

In 2002, Coloplast decided to consolidate its European and American production of post-mastectomy products. The Breast Care Division headquarters remained in Marietta, but Coloplast moved the manufacturing facility to a similar plant located in Germany. Malice was appointed Executive Vice President of Worldwide Textiles. While performing in his new position, Malice also supervised the final stages of the Breast Care Division, including deconstructing the Marietta facility, and he was still involved in research and development for the Breast Care Division. He was also a member of the Breast Care Management Group and the Corporate Management Group, which met regularly to discuss decisions regarding future development, including new products.

Malice v. Coloplast Corp.

The arbitrator did not manifestly disregard the law in determining that the non-compete and non-solicit covenants in the defendant's executive employment agreement were reasonable and enforceable.

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