Plaintiff brings an action for a declaratory judgment arguing that he/she has fulfilled certain contractual duties and is now free from a non-competition restriction placed upon him/her in the contract.
Michigan Complaint For Declaratory Judgment Of Validity of Separate Noncompetition Agreements
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US-000288
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How to fill out Complaint For Declaratory Judgment Of Validity Of Separate Noncompetition Agreements?
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FAQ
Restrictive covenants can be excellent tools for employers to protect their business' reputation, competitiveness, and confidential information. And in Michigan, such covenants will generally be enforceable, provided that they are reasonable.
However, Michigan courts have generally found non compete agreements lasting up to a year to be reasonable and those lasting longer than three years to be unreasonable.
Many Michigan businesses require their employees to sign non-compete agreements. Although many people assume these types of agreements are not enforceable, the fact is that non-compete agreements may be enforceable under Michigan so long as certain requirements are met.
Duration of the Non Compete Agreement The amount of time that is reasonable may vary depending on the circumstances. However, Michigan courts have generally found non compete agreements lasting up to a year to be reasonable and those lasting longer than three years to be unreasonable.
Under Michigan law, a noncompete agreement is only valid to the extent it is ?reasonable as to its duration, geographical area, and type of employment or line of business,? MCL 445.774a.
2.605. (A) Power to Enter Declaratory Judgment. (1) In a case of actual controversy within its jurisdiction, a Michigan court of record may declare the rights and other legal relations of an interested party seeking a declaratory judgment, whether or not other relief is or could be sought or granted.
Under Michigan law, if a noncompete is challenged in court and parts of it are found to be reasonable while other parts are found to be unreasonable, the court has the discretion to limit the unreasonable portions of the agreement in order to make it enforceable.
Michigan courts will enforce noncompetes that are ?reasonable.? Just what is reasonable is a matter of balancing the employer's business interest against the right of the employee to work and earn a living in his or her trade.