Early et al.v.MiMedx Group, Inc.
MiMedx Group hired ISE Professional Testing & Consulting Services to provide research and development consulting related to amnion products. The agreement named ISE employee Ryanne Early and required her to devote all of her working time—at least 40 hours per week—to the engagement. After MiMedx terminated the agreement, it sued ISE and Early for breach, alleging that Early had not devoted her full working time and had misappropriated confidential information. Early and ISE moved for judgment on the pleadings, arguing that the full-working-time provision was an illegal restraint of trade. The Court of Appeals of Georgia held that the defense was properly raised by motion and that the agreement’s severability clause allowed the parties to enforce some provisions while challenging others. More importantly, the court held that the provision was a restraint of trade, not merely a loyalty obligation, because it barred Early from performing any work—competitive or not—and lacked limits on scope or territory. Even assuming it was only a partial restraint, it was unreasonable as a matter of law. The court reversed the denial of judgment on the pleadings as to MiMedx’s breach claim and did not reach whether the provision bound Early personally.
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