Outfitters Satellite, Inc., & Earthtrak Vehicle Tracking Systems v. CIMA Inc., et al.

This case involves a dispute over the enforcement of non-compete and confidentiality agreements in an employment contract. A company selling satellite telephone and GPS equipment filed suit in the Chancery Court for Davidson County seeking to enforce a non-compete agreement against a former employee who was allegedly interfering with its business relations with customers and suppliers. Following a bench trial, the Trial Court determined that the employee had breached the agreements and enjoined the employee from competing with his former employer for one year in North America. The employee has appealed, asserting that the non-compete agreement is unenforceable or, in the alternative, that its geographic coverage is too broad. We have determined that the non-compete agreement is enforceable but that its geographic coverage should be limited to the United States rather than to North America.