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- Title
CONTRACTS-RESTRAINT OF TRADE OR COMPETITION IN TRADE-FORUM-SELECTION CLAUSES & NON-COMPETE AGREEMENTS: CHOICE-OF-LAW AND FORUM-SELECTION CLAUSES PROVE UNSUCCESSFUL AGAINST NORTH DAKOTA'S LONGSTANDING BAN ON NON-COMPETE AGREEMENTS.
- Authors
Griffin, Abigale
- Abstract
North Dakota's prohibition on trade restriction has been described by the North Dakota Supreme Court as "one of the oldest and most continuous applications of public policy in contract law." In a unanimous decision, the court upheld North Dakota's longstanding public policy against non-compete agreements by refusing to enforce an employment contract's choice-of-law and form-selection provisions. In Osborne v. Brown & Saenger, Inc., the court held: (1) as a matter of first impression, dismissal for improper venue on the basis of a forum-selection clause is reviewed de novo. (2) employment contract's choice-of-law and forum-selection clause was unenforceable to the extent the provision would allow employers to circumvent North Dakota's strong prohibition on non-compete agreements; and (3) the non-competition clause in the employment contract was unenforceable. This case is not only significant to North Dakota legal practitioners, but to anyone contracting with someone who lives and works in North Dakota. This decision affirms the state's enduring ban of non-compete agreements while shutting the door on contracting around the issue through forum-selection provisions.
- Subjects
TRADE regulation; CONTRACTS; COVENANTS not to compete; LABOR contracts; CONFLICT of laws; FORUM selection clause; NORTH Dakota. Supreme Court
- Publication
North Dakota Law Review, 2020, Vol 95, Issue 1, p189
- ISSN
0029-2745
- Publication type
Article