Carolina Flooring Specialists

October 28, 2022

Stonhard Inc V. Carolina Flooring Specialists Inc

Factual/procedural background

Stonhard, Inc. (Stonhard) sued Carolina Flooring Specialists, Inc., Daniel Parham and Manuel Parham (defendants) alleging, among other things, that the defendants violated the terms of a non-competition agreement. While employed at Stonhard, the defendants signed a non-competition agreement which provides:

During my employment with Stonhard, and for a period of one (1) year following termination of employment with Stonhard, regardless of the reason for such termination, I will not compete with Stonhard by engaging in similar activity activities I undertake during my employment with Stonhard. Group, Inc. c. More, 183 N.J. 36, 869 A.2d 884, 900 (2005) (holding that the lower court should have diminished the geographic limitation in the non-competition agreement, and that courts should not hesitate to partially enforce an agreement when it is reasonable to do so); Solari Indus., Inc. v. Malady, 55 N.J. 571, 264 A.2d 53, 61 (1970) (adopting a rule permitting “total or partial performance of non-competitive agreements to the extent reasonable in the circumstances”). damage

The second certified question is: (1) whether New Jersey law would allow damages to be assessed from the time the alleged breach of covenant began, rather than from the time the covenant is reformed, if reformed; and (2) if such a decision is contrary to South Carolina public policy. Extension of expiry date

Stonhard argues that equity and public policy in South Carolina allow the district court to extend the recognizance expiration date beyond the one-year period after defendants' termination. , which is provided for in the contract. Even if the agreement could be reformed in this way under New Jersey law, the agreement would be unenforceable in South Carolina because the mere addition of a clause not negotiated and agreed to by the parties violates public policy. .

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