Question: Dr. Zhivago grew up in a small town in North Carolina. He was extremely intelligent and did well in college and medical school. After a fellowship in thoracic surgery, he was offered positions, with extremely good employment terms and conditions, in various reputable medical practices throughout the United States. Feeling some duty to his hometown, however, Dr. Zhivago decided to return to his local community to practice medicine. He was offered and accepted employment with a multispecialty group practice. The practice paid his
Case Questions
1. Given that such agreements restrict competition, under what circumstances should a court enforce a covenant not to compete?
2. In general, courts will enforce a covenant not to compete if it is
(1) in writing,
(2) entered into at the time of employment as part of the employment contract,
(3) based on reasonable consideration,
(4) reasonable with respect to time and territory, and (5) not against public policy. Using this as a guide, how should the court decide in this case?
For additional information, see Iredell Digestive Disease Clinic, P.A., v. Petrozza, 92 N.C.App. 21, 373 S.E.2d 449 (1988), aff'd per curiam, 324 N.C.327, 377 S.E.2d 750 (1989).