At Preliminary Injunction Stage, Court Cannot Extend Non-Competition Period by the Length of Former Employee’s Breach

By Steve Runyan, Kroger Gardis & Regas LLP

The Indiana Court of Appeals recently held in a noncompetition case that even if the contract required that the non-compete period be extended by any period of breach, that such extension was not permissible as part of a preliminary injunction. The Court held that a preliminary injunction upholds the status quo pending a final determination, and that the status quo was the situation prior to litigation – the original timing of the noncompete. As a result, the noncompete period terminated on the date set forth in the agreement, irrespective of any breach by the former employee. The Court’s opinion can be found here.

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