Ninth Circuit Enforces Non-Compete

A three-judge panel of the 9th Circuit Court of Appeals has upheld a preliminary injunction enforcing a non-compete agreement against a former employee who left USI Insurance Services to join Alliant Insurance Services Inc. The agreement at issue, was signed by Michael Aitkin in April 2018. He agreed to refrain from competing with USI during his employment as a broker, and to provide 60 days’ notice before resigning. Fourteen months later he resigned without giving 60-day notice, and went to work for Alliant. USI claims he had already diverted clients to his new employer. A district court in Oregon issued a preliminary injunction enforcing the non-compete agreement, and the 9th Circuit panel concurred on May 6th. “The district court did not clearly err, the panel said. “It properly considered the interests of ‘non-parties’ like Aitkin’s former USI clients and balanced them against the public’s interest in enforcing valid contracts.”