GetFile - 397 N.W.2d 311 154 Mich.App 360 397 N.W.2d 311...

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Court of Appeals of Michigan. Kenneth COMPTON, Plaintiff-Appellee, v. JOSEPH LEPAK, D.D.S., P.C., Defendant-Appel- lant. Docket No. 87056. Submitted June 17, 1986. Decided Sept. 8, 1986. Leave to Appeal Denied Feb. 10, 1987. Former employee of professional corporation brought action to have noncompetition covenant in professional service agreement with corporation de- clared void and unenforceable. The Circuit Court, Oakland County, John N. O'Brien, J., entered sum- mary judgment in favor of former employee, and corporation appealed. The Court of Appeals, Allen, P.J., held that: (1) statute precluding contracts in re- straint of trade or commerce did not render non- competition covenants void and unenforceable; (2) covenant was not unenforceable merely because it was unlimited in duration; but (3) noncompetition covenant which violated statute in effect at time of agreement was void from its inception, and was not rendered enforceable by repeal of that statute and enactment of new statute permitting noncompeti- tion covenants. Affirmed. West Headnotes [1] Contracts 95 116(1) 95 Contracts 95I Requisites and Validity 95I(F) Legality of Object and of Considera- tion 95k115 Restraint of Trade or Competition in Trade 95k116 In General 95k116(1) k. In general. Most Cited Cases (Formerly 265k12(4)) Statute barring any contract in restraint of trade or commerce did not render all covenants not to com- pete in professional service agreements void and unenforceable. M.C.L.A. § 445.772 . [2] Contracts 95 117(8) 95 Contracts 95I Requisites and Validity 95I(F) Legality of Object and of Considera- tion 95k115 Restraint of Trade or Competition in Trade 95k117 General or Partial Restraint 95k117(8) k. Restrictions unlimited or indefinite as to time. Most Cited Cases Contracts 95 202(2) 95 Contracts 95II Construction and Operation 95II(C) Subject-Matter 95k202 Trade and Business 95k202(2) k. Restriction of competi- tion. Most Cited Cases Covenant not to compete in professional service agreement was not per se unreasonable restraint of trade merely because it was unlimited in duration; rather, covenant was to be interpreted as having reasonable duration. M.C.L.A. § 445.772 . [3] Statutes 361 278.19 361 Statutes 361VI Construction and Operation 361VI(D) Retroactivity 361k278.18 Repealing Acts 361k278.19 k. In general. Most Cited Cases (Formerly 361k273) When agreement or contract is entered into in viol- ation of statute, repeal of that statute does not make agreement valid, as legislature cannot validate con- 397 N.W.2d 311 Page 1 154 Mich.App. 360, 397 N.W.2d 311, 1986-2 Trade Cases P 67,389 (Cite as: 154 Mich.App. 360, 397 N.W.2d 311) © 2010 Thomson Reuters. No Claim to Orig. US Gov. Works.
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tract which never had legal existence; only excep- tions are if repealing statute expressly or impliedly states that it validates previously invalid agree- ments or if repealed statute affects only remedy. [4] Statutes 361 278.11 361 Statutes 361VI Construction and Operation 361VI(D) Retroactivity 361k278.11 k. Remedial, ameliorative, and curative statutes. Most Cited Cases (Formerly 361k264) Statutes 361 278.13 361 Statutes 361VI Construction and Operation 361VI(D) Retroactivity 361k278.12 Statutes Relating to Remedies and Procedures 361k278.13 k. In general. Most Cited Cases
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