INNOVATION VENTURES, LLC, formerly doing business as LIVING ESSENTIALS, a Michigan Limited Liability Company, Plaintiff-Appellant, v LIQUID MANUFACTURING, LLC, a Michigan Limited Liability Company, K & L DEVELOPMENT OF MICHIGAN, LLC, a Michigan Limited Liability Company, LXR BIOTECH, LLC, a Michigan Limited Liability Company, ETERNAL ENERGY, LLC, a Michigan Limited Liability Company, ANDREW KRAUSE, an individual, and PETER PAISLEY, an individual, Defendants-Appellees., 499 Mich. 491

Summary

HOLDINGS: [1]-In a dispute over an agreement to design, manufacture, and install packaging equipment for an energy drink, the trial court erred by finding that the manufacturing and nondisclosure agreements were void for failure of consideration because the agreements were supported by sufficient consideration and performance to render them enforceable; [2]-The Michigan Court of Appeals erred by applying the standard articulated in MCL 445.774a, which is the proper framework to evaluate the reasonableness of noncompete agreements between employees and employers; [3]-Commercial noncompete agreements should be evaluated under the rule of reason; [4]-There was no genuine issue of material fact as to whether two defendants breached the manufacturing agreement, because there was no allegation that they obtained confidential information after the agreement was executed.