History
  • No items yet
midpage
885 N.W.2d 798
Wis. Ct. App.
2016
Read the full case

Background

  • Manitowoc and Lanning entered a 2008 agreement including a two-year nonsolicitation of employees (NSE) restraint.
  • Lanning left Manitowoc in January 2010 to join a direct competitor (SANY) of Manitowoc.
  • After leaving, Lanning allegedly contacted and recruited Manitowoc employees for SANY through various means.
  • Manitowoc sued for breach of the NSE, and the circuit court granted summary judgment for Manitowoc and awarded fees and costs.
  • The court held the NSE was enforceable under Wis. Stat. § 103.465, and Manitowoc was entitled to damages and fees.
  • On appeal, the supreme court held that § 103.465 governs the NSE and that the NSE is unenforceable under the statute, reversing the circuit court and remanding for entry of summary judgment in Lanning’s favor.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Wis. Stat. § 103.465 governs the NSE provision Manitowoc argues § 103.465 applies to NSE as a trade restraint Lanning concedes framework but argues NSE may not be governed or enforceable under § 103.465 § 103.465 applies to the NSE provision
Whether the NSE provision is enforceable under § 103.465 NSE is narrowly tailored to protect Manitowoc’s legitimate interests NSE is overbroad and not justified by any protectable interest NSE is unenforceable under § 103.465; the circuit court’s judgment is reversed and remanded for entry of summary judgment in Lanning’s favor

Key Cases Cited

  • Star Direct, Inc. v. Dal Pra, 319 Wis. 2d 274 (Wis. 2009) (reasonableness framework for covenants under § 103.465)
  • Behnke v. Hertz Corp., 235 N.W.2d 690 (Wis. 1974) (covenants in restraint of trade require close scrutiny)
  • Tatge v. Chambers & Owen, Inc., 579 N.W.2d 217 (Wis. 1998) (§ 103.465 applies to trade restraints ensuring reasonableness)
  • Lakeside Oil Co. v. Slutsky, 98 N.W.2d 415 (Wis. 1959) (protectable interest required for enforceability)
  • Brass v. Mutual Serv. Cas. Ins. Co., 625 N.W.2d 648 (Wis. 2001) (overbreadth invalidates restrictive covenants)
Read the full case

Case Details

Case Name: Manitowoc Co. v. Lanning
Court Name: Court of Appeals of Wisconsin
Date Published: Aug 17, 2016
Citations: 885 N.W.2d 798; 371 Wis. 2d 696; 2016 Wisc. App. LEXIS 537; 2016 WI App 72; No. 2015AP1530
Docket Number: No. 2015AP1530
Court Abbreviation: Wis. Ct. App.
Log In