Thursday, August 18, 2022

One new decision by SD Supreme Court (Former employee prevails in dispute over non-compete agreement)

 

The SD Supreme Court handed down one decision this morning, holding inter alia:

 

  1. Former employee prevails in dispute over non-compete agreement.

 

DT-TRAK CONSULTING, INC. v. KOLDA, 2022 S.D. 50:  This is an intermediate appeal from the trial court’s ruling on cross-motions for summary judgment in regard to Plaintiff Employer’s action to enforce a non-compete agreement.  The trial court had denied both motions, holding that there were sufficient facts to allow the case to proceed before a jury.  The SD Supreme Court reversed and remanded, holding that the employee should have received a favorable summary judgment on Counts 1, 2, and 4.  The Court also notes that Plaintiff Employer “is no longer seeking relief under Count III of its Complaint.”  This decision is unanimous (5-0) with opinion authored by Justice Kern.

NOTE:  We are told in¶2 of the opinion that Plaintiff Employer is a “medical consulting firm and independent contractor” that “provides consulting services to hospitals and other medical providers, such as medical coding, compliance auditing, billing, medical staffing, workflow analysis, and other support services. DT-Trak alleges that it provides its services throughout the United States; specifically, that it has active contracts with clients in 19 states and potential clients or pending bids for clients in several other states.”

 

This decision may be accessed at

 

http://ujs.sd.gov/Supreme_Court/opinions.aspx .