Legislator Case Law & Legislation
11 02 134 • KG LU 11 02 134 AI generated

Non-Compete Clause in Share Purchase Agreement Upheld Against Employment Law Challenge

Case Number 11 02 134
Court / Authority
Jurisdiction Switzerland · Canton of Lucerne (CH-LU)
Decision Date
Outcome Allowed / Granted
Court Costs Borne by appellant

Legislator summary

AI generated

The case concerned an appeal against the granting of preliminary injunctive relief to enforce a non-compete clause stipulated in a share purchase agreement, rather than in a subsequent employment contract. The court reasoned that since the non-compete covenant arose from the sale of the company shares (Article 20 of the share purchase agreement), it was governed by sales law provisions (Articles 19 and 20 OR, and Articles 27/28 ZGB), not employment law provisions, rendering the appellant's arguments regarding the invalidity based on employment law inapplicable. Furthermore, the court found that the five-year, nationwide restriction did not constitute an excessive limitation of the appellant's economic freedom under Article 27 ZGB, especially considering the substantial proceeds from the sale and the pre-existing, long-term employment contract mitigating potential economic harm, thereby justifying the interim measures to prevent immediate harm to the acquired business.

Legislator headnote

AI generated

Art. 292 StGB, Art. 340 OR, Art. 340a OR, Art. 27 Abs. 2 ZGB, Art. 340c Abs. 2 OR, Art. 337b OR; Non-Compete Clause in Share Purchase Agreement Upheld Against Employment Law Challenge: The court reasoned that since the non-compete covenant arose from the sale of the company shares (Article 20 of the share purchase agreement), it was governed by sales law provisions (Articles 19 and 20 OR, and Articles 27/28 ZGB), not employment law provisions, rendering the appellant's arguments regarding the invalidity based on employment law inapplicable. Furthermore, the court found that the five-year, nationwide restriction did not constitute an excessive limitation of the appellant's economic freedom under Article 27 ZGB, especially considering the substantial proceeds from the sale and the pre-existing, long-term employment contract mitigating potential economic harm, thereby justifying the interim measures to prevent immediate harm to the acquired business.

Keywords

AI generated
share purchase agreement non-compete covenant freedom of contract economic law preliminary contract interim employment

Cited Legislation

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Cited Case Law

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BGE 95 II 535
BGE 123 III 345
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Key legal questions extracted by Legislator

AI generated
Art. 27 ZGB

Cited in the reasoning to uphold the validity of the non-compete clause against the claim of excessive restriction of economic freedom.

Art. 19 OR

Cited in the reasoning as the legal basis for assessing the validity of the sales-law related non-compete agreement.

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Full text

Rechtsprechung Luzern

Instanz: · Obergericht

Abteilung: · I. Kammer

Rechtsgebiet: · Personenrecht

Entscheiddatum: · 09.12.2002

Fallnummer: · 11 02 134

LGVE: · 2002 I Nr. 4

Leitsatz: · Art 27 f. ZGB; Art 19 f. OR. Vorsorgliche Massnahmen zur Durchsetzung eines kaufrechtlichen Wettbewerbsverbotes.

Rechtskraft: · Diese Entscheidung ist rechtskräftig.