Tag Archives: Uniform Written Obligations Act

“Intent to be Legally Bound” Insufficient Consideration for Non-Compete in Pennsylvania

On November 18, 2015, a 4-1 majority of the Pennsylvania Supreme Court (Justice Eakin, dissenting) held in Socko v. Mid-Atlantic Systems of CPA, Inc., No. 142 MAP 2014, that a post-employment covenant not to compete entered into by an employee after the start of his employment was void for lack of consideration, despite the fact that the agreement containing the non-competition covenant included language that the parties “intend to be legally bound.”  In so doing, the Court affirmed the Pennsylvania Superior Court’s May 13, 2014 order which, in turn, had affirmed the trial court’s grant of partial summary judgment to the plaintiff/employee.  Socko v. Mid-Atlantic Systems of CPA, Inc., 99 A.3d 928 (Pa. Super. 2014).  Continue reading “Intent to be Legally Bound” Insufficient Consideration for Non-Compete in Pennsylvania