HOME PARAMOUNT PEST CONTROL v. Shaffer
718 S.E.2d 762
Va.2011Background
- Shaffer signed an employment agreement in January 2009 containing a broad non-compete prohibiting pest-control activities for two years after termination in the states where he worked or was assigned and during two years prior.
- Shaffer resigned from Home Paramount in July 2009.
- Within the two-year period referenced in the Provision, Shaffer began employment with Connor's Termite and Pest Control, Inc.
- Home Paramount amended its complaint in September 2009, alleging breach of contract by Shaffer and tortious interference by Connor's, and the defendants moved to bar these claims as overbroad.
- The circuit court granted the plea in bar and dismissed the relevant counts; remaining counts were nonsuited, prompting this appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the provision overbroad under the function element? | Shaffer | Shaffer | Provision overbroad; unenforceable |
| Did Paramount Termite Termite Co. v. Rector control or get overruled? | Home Paramount | Home Paramount | Paramount overruled; provision not saved by stare decisis |
Key Cases Cited
- Blue Ridge Anesthesia & Critical Care, Inc. v. Gidick, 239 Va. 369 (1990) (upholding limited noncompete language that targets similar services while allowing noncompetitive roles)
- Advanced Marine Enterprises, Inc. v. PRC Inc., 256 Va. 106 (1998) (prohibition on rendering competing services to a former employer's customers)
- Simmons v. Miller, 261 Va. 561 (2001) (broader scope noncompete unenforceable; function element must track employer's business)
- Motion Control Systems, Inc. v. East, 262 Va. 33 (2001) (broadened prohibition against similar businesses is unenforceable)
- Omniplex World Servs., Corp. v. U.S. Investigations Servs., Inc., 270 Va. 246 (2005) (valid provisions prohibit activities that actually or potentially compete)
- Paramount Termite Control Co. v. Rector, 238 Va. 171 (1989) (prior controlling rule upholding noncompete)
