Debtor Cannot be Bound by Noncompete

September 7, 2018

In a recent decision, the United States Bankruptcy Court for the District of Massachusetts held that a debtor is not prohibited from competing with the purchaser of his former business’s assets or from treating his former business’s patients. In its decision, the Court analyzed the state of non-compete law within the bankruptcy context, finding that implied covenants not to compete are not applicable where a debtor’s assets are involuntarily sold. After determining that the debtor’s “fresh start” outweighed the trustee’s right to a recovery, the Court denied the Trustee’s request to enforce a covenant not to compete against the debtor.


Curran Antonelli represented the debtor in this precedential case. Thomas Curran, managing partner, highlights the key takeaways that can be found from this court ruling in recent article published by Massachusetts Lawyers Weekly


Download the Full Article


Download the Court Decision

Curran Antonelli represents a broad range of businesses and corporate entities, private equity funds, as well as governmental agencies and other interested parties in all phases of the bankruptcy process and in bankruptcy related transactions and litigation.  As advocates and trusted business advisors, our well-established foundation of knowledge and understanding of our clients’ business interests, enables our attorneys to deliver unparalleled individualized attention to our clients of all sizes with their litigation and corporate transactional needs.

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