NATIONAL GRAPHICS COMPANY, a Colorado corporation, Plaintiff-Appellant, v. Sharon DILLEY, Defendant-Appellee, 681 P.2d 546

Summary

The corporation's claims against the employee arose out of the employee's alleged breach of an employment agreement, which contained a noncompetition clause. The trial court ruled that the agreement was void because it was silent as to both the time and the geographic limitation and was therefore unreasonable. On appeal, the court determined that prior to the passage of § 8-2-113(2), the rule was that to be valid and enforceable, a covenant not to compete had to be reasonable in terms of duration and geographic scope. The court also found that the legislative intent recognized the rule of reasonableness. The court concluded that even if a noncompetition clause was not void under § 8-2-113, to be enforceable, it had to satisfy the rule of reasonableness. The court found that although the trial court had discretion to reform an unreasonable territorial restrictions set for in a covenant not to compete in order, the trial court did not abuse its discretion in refusing to rewrite the ...