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You’ve got to wonder what the people who decided to file a lawsuit against James Hensel were thinking.

It’s hard enough to enforce a written noncompete agreement, much less an oral agreement, but that’s what Steelcraft tried to do in its suit against Hensel in Worcester County.

That didn’t seem to be an obstacle to Steelcraft, Inc., who sought a preliminary injunction against Hensel, its former employee.  Steelcraft was able to allege nothing more than an oral noncompete agreement.  One of several requirements for enforceability of a noncompete agreement is that it be reasonable in duration and geography, and even though Steelcraft alleged an oral agreement, it said nothing about that element, rendering the agreement unenforceable in the eyes of Worcester County Superior Court  Judge Richard T. Tucker.

Steelcraft also alleged that Hensel had taken Steelcraft trade secrets (the decision doesn’t discuss precisely what these were), but once again its argument was rejected on the grounds that it had failed to establish that it had properly protected the alleged secrets, and that it had failed to enter into a confidentiality agreement with the former employee.

There’s a bit more to this case (favorable to Hensel, harmful to Steelcraft), but the point is made: if you fail even to get a written noncompete agreement from your employee, don’t expect that you’ll be able to stop him from competing based on an oral agreement.  “He said - She said” just doesn’t work here.

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