Opinion ID: 852486
Heading Depth: 3
Heading Rank: 4

Heading: Prior Material Breach

Text: Finally, Krueger argues that CIP is not reasonably likely to succeed at trial because CIP materially breached the employment contract by failing to provide a $350 per month car allowance included in the contract, rendering the noncompetition agreement unenforceable. The trial court and Court of Appeals did not address this issue. Cent. Ind. Podiatry, 859 N.E.2d at 696. Krueger is correct that a breach by the employer may prevent enforcement of a noncom-petition agreement. E.g., Licocci, 445 N.E.2d at 561. See generally T.C. Williams, Annotation, Restrictive Clause in Employment or Sales Contract to Prevent Future Competition or Performance of Services for Others as Affected by Breach of Party Seeking to Enforce It, of His Own Obligations Under the Contract, 155 A.L.R. 652 (1945) (summarizing cases in which breach prevented employer from enforcing noncompetition agreement). Because of the relative amounts involved, CIP's failure to pay the car allowance is arguably immaterial in the context of an agreement providing a podiatrist's compensation, but the record is unclear as to the amount of Krueger's compensation. [7] In any event, the employment contract contained a no-defense provision that the noncompetition agreement shall be construed as independent of any other provision of this Contract and shall survive the termination of this Contract. The existence of any claim or cause of action of Employee against Corporation, whether predicated on this Contract or otherwise, shall not constitute a defense to the enforcement by Corporation of this Restrictive Covenant. To the extent we find any authority on nodefense provisions, the provisions have been upheld, even in the face of apparently major breaches by the employer. Orkin Exterminating Co. v. Gill, 222 Ga. 760, 152 S.E.2d 411, 413 (1966) (alleged wrongful termination); French v. Cmty. Broad. of Coastal Bend, Inc., 766 S.W.2d 330, 334 (Tex.Ct.App.1989) (alleged failure to give severance pay, failure to give notice of termination, failure to buy home as agreed, refusal to issue stock). There may be some breaches by the employer that would override such a contractual provision, but at least the relatively minor issues Krueger raises are not sufficient to deprive CIP altogether of the right to enforce the noncompetition agreement.