Murfreesboro Medical Clinic, P.A. v. David Udom

The issue presented in this case is whether a covenant not to compete is enforceable between a physician and his former employer, a private medical clinic. The trial court concluded that the noncompete agreement was enforceable and enjoined the physician from establishing a medical practice at a location within the restricted area. The Court of Appeals affirmed the trial court’s decision that the non-compete agreement was enforceable, but reversed the grant of the temporary injunction and remanded the case to the trial court for further determinations with respect to the agreement’s “buyout” provision. After a thorough review of the issues presented, including considerations of public policy, we reverse the Court of Appeals’ judgment. We hold that except for those specifically prescribed by statute, physicians’ covenants not to compete are unenforceable and void.