April 11, 2011 08:45
Settlement of lawsuits is almost universally considered a good thing because, among other things, the parties are able to end their dispute immediately. But some cases suggest that settlement might simply postpone the battle until another day. According to these courts, this is true because restrictive covenants in settlement agreements are subject to the same strict judicial scrutiny applied to employment agreement covenants. Consequently, if an employee violates a covenant contained in a settlement agreement, the parties might find themselves back in court litigating the same issues they thought they had settled.