Question: In 1993, Mutual Service Casualty Insurance Co. and its affiliates (collectively, MSI) hired Thomas Brass as an insurance agent. Three years later, Brass entered into

In 1993, Mutual Service Casualty Insurance Co. and its affiliates (collectively, MSI) hired Thomas Brass as an insurance agent. Three years later, Brass entered into a career agent’s contract with MSI. This contract contained provisions regarding Brass’s activities after termination. These provisions stated that, for a period of not less than one year, Brass could not solicit any MSI customers to “lapse, cancel, or replace” any insurance contract in force with MSI in an effort to take that business to a competitor. If he did, MSI could at any time refuse to pay the commissions that it otherwise owed him. The contract also restricted Brass from working for American National Insurance Co. for three years after termination. In 1998, Brass quit MSI and immediately went to work for American National, soliciting MSI customers. MSI filed a suit in a Wisconsin state court against Brass, claiming that he had violated the noncompete terms of his MSI contract. Should the court enforce the covenant not to compete? Why or why not?

Step by Step Solution

3.49 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The court granted a summary judgment in Brasss favor finding that the contract was overbroad in its ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

111-L-B-L-C (566).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!