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Ceramic & Metal Coatings Corp. v. Hizer

Employment agreement barring defendant from competing with his former employer in territories where he never worked and from seeking employment with a similar business was overbroad.

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Ceramic and Metal Coatings Corporation CMC appeals from the trial court’s order denying its request for injunctive relief and granting defendant James Hizer’s motion for partial summary judgment. The issue on appeal is whether the trial court correctly determined that the restrictive covenant not to compete contained in Hizer’s employment agreement with CMC was over broad and therefore unenforceable. Because we agree that the noncompete clause was over broad as to territory and scope of activities, we affirm.

This case arose when Hizer quit his job as a sales representative at CMC. Hizer had worked for the company, which makes centrifugal pumps, for 26 years. When efforts to renegotiate the terms of his employment failed, Hizer quit the company and set up a competing business. CMC filed suit for injunctive relief and damages. The trial court denied CMC’s motion for a temporary restraining order and granted Hizer’s motion for summary judgment, finding the restrictive covenant was overly broad and, therefore, unenforceable.

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