In a dispute involving a covenant not to compete, the Court of Appeals of the State of Michigan, on March 24, 2009, decided that the covenant not to compete contained in the employment contract for Dr. William G. Stahl, III ("plaintiff"), with U.P. Digestive Disease Associates, P.C. ("defendant"), was not enforceable.
The covenant not to compete in his two year employment contract read:
Covenant Not to Compete. PHYSICIAN pledges active and industrious performance of duties in the CORPORATION’S best interests. To that end, if PHYSICIAN separates from employment service with the CORPORATION, PHYSICIAN shall not compete with CORPORATION within 150 miles of the City of Marquette for a period of two (2) years after such separation, unless the terms of such competition have been agreed to in writing by the Board of Directors of the CORPORATION, acting by the remaining Stockholders.
