Harville v. Gunter

Decision Date15 January 1998
Docket NumberNo. A97A2155,A97A2155
Citation495 S.E.2d 862,230 Ga.App. 198
Parties, 1998-1 Trade Cases P 72,040, 98 FCDR 401 HARVILLE v. GUNTER.
CourtGeorgia Court of Appeals

Shepherd & Johnston, William G. Johnston III, Griffin, for appellant.

Alan W. Connell, Thomaston, for appellee.

ANDREWS, Chief Judge.

Karen Harville appeals from the trial court's judgment granting K.B. Gunter's, d/b/a Exceptional Rehab Services (Exceptional Rehab), request for an injunction upholding the covenant not to compete in Harville's employment contract. Harville brings ten enumerations of error, contending in main part that the covenant not to compete is overbroad and unreasonable in its terms. We agree and reverse the judgment of the trial court.

Exceptional Rehab hired Harville as a speech pathologist in July 1995. Harville signed a covenant not to compete at the time she was hired and again a year later. The covenant not to compete which she signed in July 1996, required her to "restrict her actions" as follows:

"(b) For a period of one (1) year after termination of Employee's employment by Employer, whether such termination is with or without cause and whether such termination is at the instance of Employer or Employee or as a result of a non-renewal of this Agreement, for a period of one (1) year after such termination, directly or indirectly, for herself, or as agent, or employee of any other person or persons, or through any other person or persons as her agent, Employee, or otherwise, engage in the practice of speech-language pathology or be an officer, director, shareholder, or employee of any corporation which engages in the practice of speech-language pathology and/or audiology in Troup County, Upson County, Pike County, Lamar County, Georgia, or in any town or city in such other county or counties as Employee may hereinafter practice speech-language pathology in the employment of the Employer;

"(1) Engage in the practice of speech-language pathology;

"(2) Provide speech-language pathology or audiology services to any person or organization which received such services from Exceptional Rehab Services at any time during Employee's employment by Employer; or

"(3) Engage in speech-language pathology and/or audiology activities at a facility serviced by Exceptional Rehab Services at any time during Employee's employment by employer...."

A little over three months after signing this agreement, Harville informed Exceptional Rehab that she was quitting her job effective December 31, 1996. Harville then took a job with Professional Rehabilitation Services and began practicing speech pathology at Riverside Nursing Home in Thomaston, Georgia, which is in Upson County. Harville had previously practiced speech pathology at Riverside Nursing Home for Exceptional Rehab.

Exceptional Rehab filed a request for an injunction pursuant to the contract. The trial court granted the injunction, finding the covenant not to compete was neither unreasonable nor overly broad. This appeal followed.

The majority of Harville's enumerations of error concern claims that several portions of the covenant are unenforceable because they are unreasonable and overbroad. "While a contract in general restraint of trade or which tends to lessen competition is against public policy and is void (1983 Ga. Const., Art. III, Sec. VI, Par. V(c); OCGA § 13-8-2), a restrictive covenant contained in an employment contract is considered to be in partial restraint of trade and will be upheld if the restraint imposed is not unreasonable, is founded on a valuable consideration, and is reasonably necessary to protect the interest of the party in whose favor it is imposed, and does not unduly prejudice the interests of the public. Whether the restraint imposed by the employment contract is reasonable is a question of law for determination by the court which considers the nature and extent of the trade or business, the situation of the parties, and all the other circumstances. A three-element test of duration, territorial coverage, and scope of activity has evolved as a helpful tool in examining the reasonableness of the particular factual setting to which it is applied." (Citations and punctuation omitted.) W.R. Grace & Co. v. Mouyal, 262 Ga. 464, 465(1), 422 S.E.2d 529 (1992). Applying this three-element test to the agreement before us, we find two...

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9 cases
  • Doan Family Corp. v. Arnberger
    • United States
    • Kansas Court of Appeals
    • December 30, 2022
    ...reasonableness or fairness and then enforcing that judicially created term. See Hassler , 505 P.3d at 178-79 ; Harville v. Gunter , 230 Ga. App. 198, 199, 495 S.E.2d 862 (1998) (appellate court declines to enforce or reform overbroad noncompete agreement). The refuse-to-enforce approach is ......
  • HULCHER SERVICES v. RJ CORMAN R. CO.
    • United States
    • Georgia Court of Appeals
    • December 8, 2000
    ...in that regard only. Howard Schultz &c. Inc. v. Broniec, 239 Ga. 181, 184-185(2), 236 S.E.2d 265 (1977); Harville v. Gunter, 230 Ga.App. 198, 200(2), 495 S.E.2d 862 (1998) (speech pathology and officer, stockholder, director, or employee with any speech pathology provider too broad); cf. Sa......
  • Capricorn Systems, Inc. v. Pednekar
    • United States
    • Georgia Court of Appeals
    • March 5, 2001
    ...184-185(2), 236 S.E.2d 265 (1977); Brunswick Floors v. Guest, 234 Ga.App. 298, 300-301, 506 S.E.2d 670 (1998); Harville v. Gunter, 230 Ga.App. 198, 200(2), 495 S.E.2d 862 (1998). (b) The next covenant is against solicitation of clients, employees, or business opportunity, and such is even b......
  • Sanford v. RDA Consultants, Ltd.
    • United States
    • Georgia Court of Appeals
    • June 1, 2000
    ...from RDA, the provision is invalid. Ceramic &c. Corp. v. Hizer, 242 Ga.App. 391, 393(1), 529 S.E.2d 160 (2000); Harville v. Gunter, 230 Ga.App. 198, 200(1), 495 S.E.2d 862 (1998). Finally, the noncompetition provision was overbroad and unenforceable as to the scope of employment, because it......
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5 books & journal articles
  • Restrictions on Post-employment Competition by an Executive Under Georgia Law - Steven E. Harbour
    • United States
    • Mercer University School of Law Mercer Law Reviews No. 54-3, March 2003
    • Invalid date
    ...whether there is a severabiltiy clause in the agreement. Browing v. Orr, 242 Ga. 380, 381, 249 S.E.2d 65, 66 (1978); Harville v. Gunter, 230 Ga. App. 198, 200, 495 S.E.2d 862, 864 (1998). The fact that noncompete provisions are not enforceable, however, does not automatically render nondisc......
  • Business Associations - Paul A. Quiros, Lynn S. Scott, and George Ward Hendon, Jr.
    • United States
    • Mercer University School of Law Mercer Law Reviews No. 51-1, September 1999
    • Invalid date
    ...349-50 (1998). 70. See, e.g., McNease v. National Motor Club of Am., Inc., 238 Ga. 53, 56, 231 S.E.2d 58, 61 (1976); Harville v. Gunter, 230 Ga. App. 198, 200, 495 S.E.2d 862, 864 (1998). 71. 238 Ga. App. 142, 518 S.E.2d 144 (1999). 72. Id. at 142, 518 S.E.2d at 145. 73. Id. 74. Id. at 143,......
  • Business Associations - Paul A. Quiros, Lynn S. Scott, and William B Shearer Iii
    • United States
    • Mercer University School of Law Mercer Law Reviews No. 52-1, September 2000
    • Invalid date
    ...See Habif, Arogeti & Wynne, P.C. v. Baggett, 231 Ga. App. 289, 289-90, 498 S.E.2d 346, 349 (1998). 237. See, e.g., Harville v. Gunter, 230 Ga. App. 198, 200, 495 S.E.2d 862, 863 (1998); McNease v. National Motor Club, 238 Ga. 53, 56, 231 S.E.2d 58, 59 (1976). 238. 241 Ga. App. 494, 525 S.E.......
  • Commercial Law - Robert A. Weber, Jr.
    • United States
    • Mercer University School of Law Mercer Law Reviews No. 50-1, September 1998
    • Invalid date
    ...727, 490 S.E.2d 136 (1997). 143. Id. at 728, 730, 490 S.E.2d at 138, 139. 144. Id. at 730, 490 S.E.2d at 139. 145. Id. 146. Id. 147. 230 Ga. App. 198, 495 S.E.2d 862 (1998). 148. Id. at 198, 495 S.E.2d at 863. 149. Id. at 199-200, 495 S.E.2d at 864. 150. Id. at 200, 495 S.E.2d at 864. 151. ......
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