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Southwest Stainless, LP v. Sappington

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Before KELLY, LUCERO, and HARTZ, Circuit Judges.

This diversity case requires us to address the contours of covenants not to compete under Oklahoma law. When John R. Sappington and William B. Emmer defected from one Tulsa-area metals business, Southwest Stainless, to another, Rolled Alloys, they took with them years of expertise in the metals industry and personal relationships with many area customers. Some years before, Southwest Stainless had been involved in a merger, and Sappington and Emmer had signed non-competition agreements that purported to restrict their ability to work for competitors in the area. When Southwest Stainless lost business to Rolled Alloys following Sappington’s and Emmer’s defections, it sued for breach of these agreements and a number of related claims.

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