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Physicians' non-compete clause OK in New Jersey
April 05, 2005 by Ross Runkel at LawMemo
Although lawyers' non-compete agreements are per se unreasonable and unenforceable, the same arrangements for physicians are OK. "Disfavored," said the New Jersey top court, but still enforceable.
The Community Hospital Group v. More (New Jersey 04/05/2005).
The court applied a fairly typical analysis to the reasonableness of the restrictive covenants, but with a heavy reliance on protecting the public interest.
The court found that it was reasonable for the covenant to prohibit the practice of neurosurgery for a period of two years. However, the court wanted the geographic area narrowed to no more than 13 miles. Most notably, the court found that there was a shortage of neurosurgeons in one emergency room, so in order to protect the public's interest the covenant could not include that emergency room.
My view: Nice job of balancing interests. Poor job of explaining why such restrictions are per se illegal for lawyers and not for physicians.
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