Partner Hansell Watt Achieves Favorable Result in the Georgia Court of Appeals, Which Rendered a Decision Clarifying Georgia Law Governing Enforceability of Restrictive Covenants

Hansell Watt was successful in convincing the Georgia Court of Appeals to affirm summary judgment granted in favor of Mr. Watt’s client, a steel building manufacturer, in a dispute involving the enforceability of restrictive covenants in an employment agreement. Georgia’s relatively new Restrictive Covenants Act was not applicable to the restrictive covenants at issue, as they were entered into prior to the effective date of the Act. The Court of Appeals’ decision clarifies pre-Restrictive Covenants Act jurisprudence by holding that language in a non-solicitation covenant which prohibits an ex-employee from “communicating with” customers of his old employer is overbroad, as it prevents the ex-employee from merely accepting unsolicited business. The Court of Appeals overruled Covington v. D. L. Pimper Group, 248 Ga. App. 265 (2001), to the extent the Covington opinion holds otherwise.