MEDCO DATA, LLC, APPELLANT,
v.
DIANA BAILEY, JOANNE KENYON, AND LAURA PEACH, APPELLEES
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
The court held that the trial court erred by failing to apply the statutory presumption of irreparable injury when considering a motion for temporary injunction to enforce a restrictive covenant.
[1] The violation of an enforceable restrictive covenant creates a presumption of irreparable injury to the person seeking enforcement.
[2] A trial court abuses its discretion by failing to apply the statutory presumption of irreparable injury when enforcing a restrictive covenant.
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligenceMedco Data sought a temporary injunction against former employees to enforce a non-compete agreement. The trial court found the agreement valid and br…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Enforcement Of Covenant Not To Compete cases and more on FLexlaw
Medco Data, LLC, appeals an order denying its motion for temporary injunction against three of its former employees. Because the trial court failed to apply the statutory presumption of irreparable injury under section 542.335(l)(j), Florida Statutes (2013), we reverse and remand for reconsideration in light of the presumption.
Medco Data sued three of its former employees and sought to enforce a covenant not to compete. As part of the suit, Medco Data filed a motion for temporary injunction pursuant to Florida Rule of Civil Procedure 1.610. At the close of the evidentiary hearing on the motion, the trial court pronounced its findings without allowing the parties to make arguments.
Among the findings were that the employment agreements between Medco Data and the former employees were both “well written” and “valid.” Further, the trial court found that the defendants “did something to breach the relationship and it cost [Medco Data] money.” But ultimately, the trial court denied the motion based on its conclusion that “Medco Data has to prove a likelihood of irreparable harm. I don’t find that the company can show that in this case.”
After the trial court pronounced its find1 ings, Medco Data requested the opportunity to submit a legal memorandum specifically for the purpose of addressing the court’s conclusion as to irreparable injury and perfecting the appellate record. The court denied the request and thereafter entered a written order denying the motion for temporary injunction. Medco Data timely appealed, arguing that the trial court reversibly erred by failing to apply a presumption of irreparable injury. We agree.
Section 542.335 governs the enforcement of restrictive covenants. Generally, to receive a temporary injunction based on the statute, “a party must plead and establish four elements: ‘(1) the likelihood of irreparable [injury], (2) the unavailability of an adequate remedy at law, (3) a substantial likelihood of success on the merits, and (4) that a temporary injunction will serve the public interest.’ ” DePuy Orthopaedics, Inc. v. Waxman, 95 So.3d 928, 938 (Fla. 1st DCA 2012) (alteration in original) (quoting Envtl. Servs., Inc. v. Carter, 9 So.3d 1258, 1261 (Fla. 5th DCA 2009)).
Subsection (l)(j) specifically addresses temporary injunctions and provides in relevant part that “[t]he violation of an enforceable restrictive covenant creates a presumption of irreparable injury to the person seeking enforcement of a restrictive covenant.” The burden is rebut-table but must be applied to enforceable restrictive covenants that have been violated. See Variable Annuity Life Ins. Co. v. Hausinger, 927 So.2d 243, 245 (Fla. 2d DCA 2006) (“In this ease, the trial court recognized that the statute operates to create a presumption of irreparable injury to the employer and that the burden shifted to [the defendant] to establish the absence of such injury.”); Am. II Elecs., Inc. v. Smith, 830 So.2d 906, 908 (Fla. 2d DCA 2002) (concluding that the movant’s “evidence was sufficient to create a rebuttable presumption of irreparable injury for purposes of obtaining an injunction” under the statute).
“The standard of review regarding the grant or denial of a motion for temporary injunction is abuse of discretion.” H & M Hearing Assocs., LLC v. Nobile, 950 So.2d 501, 503 (Fla. 2d DCA *1072007). However, no court of this state has the discretion “ ‘to construe an unambiguous statute in a way which would extend, modify, or limit, its express terms or its reasonable and obvious implications.’ ” Holly v. Auld, 450 So.2d 217, 219 (Fla.1984) (emphasis omitted) (quoting Am. Bankers Life Assurance Co. of Fla. v. Williams, 212 So.2d 777, 778 (Fla. 1st DCA 1968)). Consequently, “[t]he determination of the correct legal standard to apply is a question of law that we review de novo.” Paul v. Wells Fargo Bank, N.A., 68 So.3d 979, 986 (Fla. 2d DCA 2011) (quoting Henderson v. Henderson, 905 So.2d 901, 903 (Fla. 2d DCA 2005)).
Here, although the trial court found the facts that would trigger the presumption of irreparable harm under section 542.335(l)(j), nothing in the record suggests that the court applied it. Despite finding that the restrictive covenants were enforceable and had been violated, the trial court denied the motion because it erroneously concluded that Medco Data could not prove the element of irreparable harm. But because Medco Data was entitled to a presumption of irreparable injury based on the findings the court had already made, the court was required to apply the presumption pursuant to subsection (l)(j), shifting the burden to the defendants to establish its absence.1 See Smith, 830 So.2d at 908.
Because the trial court made findings that would trigger the presumption of irreparable injury under section 542.335(l)(j) but failed to apply the presumption, we reverse the order on appeal and remand for reconsideration in light of the presumption. If on remand the trial court determines that the presumption has been rebutted, then it shall indicate its reasons on the record.
Reversed and remanded.
ALTENBERND and VILLANTI, JJ„ Concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Surgery Ctr. Holdings, Inc. v. Guirguis, 318 So. 3d 1274 (Fla. 2d DCA 2020)…t two doctors are acting in violation of the AASC agreements. Thus, appellants are entitled to a rebuttable presumption of irreparable injury, and the burden is shifted to the doctors to establish its absence. See - 9 - Medco Data, LLC v. Bailey, 152 So. 3d 105, 107 (Fla. 2d DCA 2014) ("[B]ecause Medco Data was entitled to a presumption of irreparable injury based on the findings the court had already made, the court was required to apply the presumption pursuant to subsection (1)(j), shifting the burden t…
-
Joseph Spine, P. A. v. Moulton, 326 So. 3d 1186 (Fla. 2d DCA 2022)…oseph Spine failed to establish irreparable injury. This was error. In the face of a clear violation of a valid restrictive covenant, the trial court must apply the presumption afforded in section 542.335.3 Id.; see also Medco Data, LLC v. Bailey, 152 So. 3d 105, 107 (Fla. 2d DCA 2014) ("[B]ecause Medco Data was entitled to a presumption of irreparable injury based on the findings the court had already made, the court was required to apply the presumption pursuant to subsection (1)(j), shifting the burden t…
-
Rev Rec. Grp. v. LDRV Holdings Corp., 259 So. 3d 232 (Fla. 2d DCA 2018)
Previewing 3 of 8 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited (12 total)
- Eugene Holly, M.D. v. Albert W. Auld, M.D., 450 So. 2d 217 (Fla. 1984)
- Tillman v. State, 471 So. 2d 32 (Fla. 1985)
- Sunset Harbour Condo. Ass'n v. Robbins, 914 So. 2d 925 (Fla. 2005)
- Am. Bankers Life Assurance Co. of Fla. v. Broward Williams, 212 So. 2d 777 (Fla. 1st DCA 1968)
- Env't Servs., Inc. v. Carter, 9 So. 3d 1258 (Fla. 5th DCA 2009)
- Paul v. Wells Fargo Bank, N.A., 68 So. 3d 979 (Fla. 2d DCA 2011)
- Johnson v. Dep't of Hwy. Safety & Motor Vehicles, 905 So. 2d 901 (Fla. 1st DCA 2004)
- DePUY Orthopaedics, Inc. v. Waxman, 95 So. 3d 928 (Fla. 1st DCA 2012)
- Variable Annuity Life Ins. Co. v. Hausinger, 927 So. 2d 243 (Fla. 2d DCA 2006)
- Essie Craig v. State, 830 So. 2d 906 (Fla. 2d DCA 2002)