Traffic Control Services v. United Rentals Northwest

87 P.3d 1054 (2004)

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Traffic Control Services v. United Rentals Northwest

Nevada Supreme Court
87 P.3d 1054 (2004)

Facts

Philip Burkhardt signed covenants not to compete against Burkhardt’s employer, NES Trench Shoring (NES) (plaintiff), either during or after the term of Burkhardt’s employment. The covenants contained no provisions regarding their assignability. United Rentals Northwest, Inc. (United) (plaintiff) bought NES’s assets, including the covenants not to compete that NES had obtained from key employees such as Burkhardt. Burkhardt disliked United, refused to sign new noncompetition and nondisclosure agreements, and went to work for United’s competitor, Traffic Control Services, Inc. (Traffic Control) (defendant). United and NES contended that NES’s sale to United acted as a valid assignment to United of Burkhardt’s covenants not to compete against NES. The trial court entered an order enforcing the covenants for one year. Traffic Control and Burkhardt appealed to the Nevada Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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