Reed Mill & Lumber Co., Inc., Plaintiff-Appellant and Cross-Appellee, v. Neil Jensen, Defendant-Appellee and Cross-Appellant, and General Building Materials, Inc., Defendant-Appellee., 165 P.3d 733

Summary

Due to a sale, the employee was required to sign a noncompete agreement. When started working for the second employer, the first employer sued for breach of the noncompete agreement and for tortious interference with contract. The jury entered an award for the first employer, but the trial court entered a directed verdict and ruled that the parties were responsible for their own attorney fees. An appeal was then filed. In affirming, the appellate court determined that the trial court did not err by finding that the duration of the noncompete agreement was unreasonable. Colo. Rev. Stat. § 8-2-113 (2006) permitted such covenants in limited circumstances; they were only valid and enforceable if they were reasonable in duration and scope. It was unreasonable to extend the three-year noncompetition period to six years. Further, the trial court did not err by finding that the agreement was not made in connection with the employee's position as an executive or manager under § 8-2-113(2)(d) ...