Court Opinion

ID: 9764059
Source: CourtListenerOpinion
Date Created: 2023-08-29 03:08:46.45488+00
Date Added: 2024-06-11T07:29:52.845745
License: Public Domain

DEL SOLE, Judge,
concurring:
While I join in the decision of the Majority, I write separately to clarify what I believe is an important issue in Pennsylvania. It is my view that the law of this Commonwealth does not provide that non-competition clauses in employment contracts are entitled to enforcement by preliminary injunction absent a showing of irreparable harm.
The granting of a preliminary injunction is an extraordinary remedy. In order for that remedy to be warranted, four essential elements must coalesce. They are:
Immediate and irreparable harm which could not be compensated by damages; the greater injury would result by refusing it and by granting it; that it would properly restore parties to their status as existing immediately prior to the alleged wrongful conduct; and that the activity sought to be restrained is actionable and that an injunction is reasonably suited to abate that activity. Blair Design & Construction Co., Inc. v. Kalimon, 366 Pa.Super. 194 at 199, 530 A.2d 1357 at 1359 (1987).
A non-competition clause in an employment contract does not diminish the standard necessary for the entry of a preliminary injunction. Rather, the existence of a non-competition clause in an employment contract only permits the employer to seek relief from the court. It does not guarantee relief. In order to be granted a preliminary injunction to prevent competition by former employees, there must be a showing of irreparable harm. In New Castle Orthopedic Association v. Burns, 481 Pa. 460, 392 A.2d 1383 (1978) the Supreme Court stated:
Herman states the threshold evidentiary requirement that must be met before a preliminary injunction may be issued: Actual proof of irreparable harm. Sling Testing supplements Herman in those case where the plaintiffs *604proof of injury, although small in monetary terms, foreshadows the disruption of established business relations which would result incalculable damage should the competition continue in violation of the covenant. 481 Pa. at 467, 392 A.2d at 1387.
Non-competition clauses do not enjoy any magical status which permits a preliminary injunction to be issued merely because of the existence of the clause. Rather, before a preliminary injunction can be issued there must be a showing of actual or potential irreparable harm to the employer. In the present case I agree with the conclusion of the Majority that no such showing existed. Rather, the record establishes that the plaintiff suffered no harm as a result of the actions of the defendants. Thus, I agree with the Majority in affirming the trial court’s determination on the issue of the preliminary injunction and remanding the matter back to the trial court for consideration of request for a permanent injunction.