Restrictive Covenants For Consultants In Utah
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The primary remedy for breach of a Restrictive Covenant is a permanent injunction to restrain the breach. However, the courts have jurisdiction to award damages instead of an injunction.
Employers often include in employment contracts what are referred to as “restrictive covenants.” This term is generally used to describe two main types of contractual clause: the non-solicitation clause and the non-compete clause.
If it looks like a restrictive covenant is enforceable and is going to be breached by development, seek to obtain a restrictive covenant title indemnity insurance policy to cover any loss from a claim from a beneficiary. You should insure the full gross development value of the property affected.
Non-Competitive Activity at New Employer: One of the most straightforward ways to overcome a noncompete is by ensuring that your new role with a different employer is in a non-competitive capacity. If you're not engaging in activities that directly compete with your former employer's business, you may be in the clear.
In the case of an HOA, restrictive covenants are general rules that members of your HOA vote on that all property owners living in the area must follow. The covenant may include actions you can't take with your property, like raising livestock or running a business from your home.
Although an early Utah case upheld a five-year non-compete provision, more recent experience shows that time limits under a year can often be enforced, restrictions up to two years are sometimes enforced, and restrictions beyond two years are rarely enforced.
To officially end the restrictive covenants, it may be necessary to file a lawsuit seeking a declaration from a court that the covenants are no longer enforceable. This can be a complex legal process that may require the assistance of an attorney.
