A noncompete agreement with an employer may be challenged for a lack of consideration under the Uniform Written Obligations Act, the Pennsylvania Supreme Court has ruled, even if the agreement indicates that the parties “intend to be legally bound.”
In a 4-1 decision published Nov. 18 in Socko v. Mid-Atlantic Systems of CPA, the majority affirmed Superior Court and trial court rulings that said a noncompete covenant between plaintiff David Socko and his former employer, Mid-Atlantic Systems of CPA, was unenforceable because Mid-Atlantic failed to offer Socko any benefit or change in job status.
