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ARTICLE · 27 OCTOBER 2021

Non-Compete News: Georgia Courts Cannot Extend Non-Compete Beyond Its Terms

The more things change, the more they stay the same. That adage is apparent in Georgia's non-compete law, which had a major overhaul in May 2011, when Georgia's Restrictive Covenant Act (RCA) became effective.

United StatesLitigation, Mediation & Arbitration

The more things change, the more they stay the same.  That adage is apparent in Georgia's non-compete law, which had a major overhaul in May 2011, when Georgia's Restrictive Covenant Act (RCA) became effective. The RCA applies to restrictive covenant agreements entered into after May 2011, whereas Georgia's well-developed common law applies to agreements entered into prior to that date. Nevertheless, prior common law themes play out time and again in Georgia courts' interpretation of the RCA. One such theme is that a court is not allowed to extend a non-compete provision beyond the terms drafted in the agreement.

Last week, in Daneshgari v. Patriot Towing Services, the Court of Appeals addressed a court's extension of a non-compete provision. In Daneshgari, on June 22, 2016, Patriot Towing Services (PTS) purchased the assets belonging to D&D Autow's Inc., a full-service emergency towing company operated by Daneshgari. As part of the purchase agreement, Daneshgari

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