Narrative Opinion Summary
In this case, the appellants, Robert Lee Flickenger and John Karras, challenged an interlocutory order that granted a temporary injunction in favor of R.J. Fitzgerald Company, Inc., concerning a restrictive covenant in their employment agreement. The trial court had issued the injunction with a three-year restriction and set a $10,000 bond without holding a hearing on the bond's amount. Upon review, the appellate court upheld the enforcement of the restrictive covenant but found the three-year duration to be presumptively unreasonable under Florida law, specifically referencing section 542.335(1)(d)1, which presumes a restraint over two years to be unreasonable without supporting evidence. As Fitzgerald failed to justify the extended duration, the appellate court directed the trial court to amend the injunction to limit the restraint period to two years. Furthermore, the court determined that the setting of the bond amount without an evidentiary hearing was incorrect, as both parties should have the opportunity to present evidence on this matter. Consequently, the court affirmed the temporary injunction but partially reversed the trial court’s order by requiring an evidentiary hearing to determine the appropriate bond amount and adjusting the restraint period. Judges Patterson and Northcutt concurred with this decision.
Legal Issues Addressed
Enforcement of Restrictive Covenants under Florida Lawsubscribe to see similar legal issues
Application: The court affirmed the enforcement of the restrictive covenant in the employment agreement but deemed the three-year duration presumptively unreasonable.
Reasoning: The court affirmed the enforcement of the employment agreement but found the three-year duration of the restrictive covenant presumptively unreasonable under Florida law, specifically section 542.335(1)(d)1, which states that any restraint over two years is presumed unreasonable unless evidence to the contrary is presented.
Modification of Restrictive Covenant Durationsubscribe to see similar legal issues
Application: The court directed that the injunction be amended to reduce the restraint period from three years to two years due to lack of evidence supporting the longer duration.
Reasoning: Since Fitzgerald did not provide evidence to support the three-year limitation, the court directed the trial court to amend the injunction to reduce the restraint period to two years.
Requirement for Evidentiary Hearing on Bond Amountsubscribe to see similar legal issues
Application: The court recognized the necessity of an evidentiary hearing to determine the appropriate bond amount for damages in case of a wrongfully obtained injunction.
Reasoning: Additionally, the court recognized that the trial court erred in setting the bond amount without an evidentiary hearing, emphasizing that both parties should have the opportunity to present evidence regarding the appropriate bond amount, as damages for a wrongfully obtained injunction are limited to the bond amount.