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