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CMGRP, Inc. v. Gallant, et al

The trial court erred in finding that the non-recruitment provision in former employee's employment agreement, which precluded her from recruiting or hiring her former employer's employees, was overboard and unenforceable and erred in ruling that the non-recruitment provision was void because the customer non-solicitation provision in the same agreement was void.

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Dillard, Chief Judge.CMGRP, Inc. appeals the trial court’s declaratory judgment, which invalidated certain restrictive covenants in its employment agreement with Maggie Gallant, one of its former employees. On appeal, CMGRP argues that the trial court erred to the extent it found that the non-recruitment provision in the agreement is invalid because (1) it does not contain a geographic limitation; (2) it is not limited to the recruitment of CMGRP employees with whom Gallant had an established relationship; or (3) the admittedly void customer non-solicitation provision renders all other restrictive covenants in the agreement unenforceable. For the reasons set forth infra, we affirm, in part, and reverse, in part.

The underlying facts necessary to decide this appeal are undisputed.[1] On October 1, 2008, Gallant became an employee of Rogers & Cowan (R&C), which is a “unit” of CMGRP. As a requirement of her employment, Gallant signed an employment agreement, which was executed by Gallant and R&C on October 7, 2008. The agreement contained certain restrictive covenants, detailed infra, that precluded Gallant from recruiting R&C employees and soliciting its clients or prospective clients for one year after her term of employment ended. After several years with the company, Gallant resigned from her position at R&C, effective December 4, 2015. Subsequently, Gallant accepted an offer of employment with the Agency for the Performing Arts, Inc. (the “APA”).

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