Sam Leccia's Debut on hold

[aaron72]

I knew something had to happen. I didn't see how he was going to just be able to come out with his own line without some sort of agreement with Oliva.

[area51]

This is crazy, I have a feeling it may hurt Oliva and help Sam

[chippewastud79]

Originally Posted by area51

This is crazy, I have a feeling it may hurt Oliva and help Sam

No. Particularly if Sam has to wait 5 years to work in the industry, by the time he can re-enter the market place the mood of the industry may have changed and not crave the 'rock-and-roll'/'bad boy image' that seems to be so popular of late.

Oliva is one of the most respected/consistent/affordable/well-made/highly rated cigars across the board and Studio Tabac seems to be just another step in the right direction for them.

[loki]

Originally Posted by chippewastud79

No.

yes

[Don Fernando]

Originally Posted by loki

yes

no

[loki]

Originally Posted by Don Fernando

no

maybe?

[gnukfu]

If the issue is a non-compete agreement/contract generally you have to show that there is a likelihood of irreparable harm/injury if the preliminary injunction is not granted.

If the case makes it to trial the judge reviews the agreement using a test typically developed under the case law of that state (common law). There are a number of factors that are considered. Geographic scope, length of time, norms within the industry, and public policy are some factors that are considered. It varies from state to state depending on how the case law developed within that state.

[LasciviousXXX]

The biggest positive I can see for Mr. Leccia is that the non-compete covenant could be considered unenforceable if the duration is ruled to be unreasonable or overly broad. And let's face it, 5 years as well as restrictions on a national level could be deemed an unreasonable restriction on Mr. Leccia's ability to earn a living. Logically, I could see the judge scraping the non-compete clause in this case.

[jesseboston81]

Originally Posted by LasciviousXXX

The biggest positive I can see for Mr. Leccia is that the non-compete covenant could be considered unenforceable if the duration is ruled to be unreasonable or overly broad. And let's face it, 5 years as well as restrictions on a national level could be deemed an unreasonable restriction on Mr. Leccia's ability to earn a living. Logically, I could see the judge scraping the non-compete clause in this case.

On a related issue, and this goes back to what George was saying about state common law, if this goes to trial and the five year duration is deemed too long, then it will come down to whether Florida's common law strikes the clause completely or whether it rewrites it to be enforceable. However, as with most cases, Sam and Oliva will likely reach an agreement and this won't ever make it to trial anyways.

[TheRiddick]

Originally Posted by LasciviousXXX

The biggest positive I can see for Mr. Leccia is that the non-compete covenant could be considered unenforceable if the duration is ruled to be unreasonable or overly broad. And let's face it, 5 years as well as restrictions on a national level could be deemed an unreasonable restriction on Mr. Leccia's ability to earn a living. Logically, I could see the judge scraping the non-compete clause in this case.

Non-compete is ALWAYS signed by BOTH parties. Since Leccia had no beef with the duration of the clause when he WILLINGLY signed it I can't imagine a judge now vacating it. If he signed the agreement in bad faith, as now it seems, then he should not be complaining. Besides, if there is a 5 year non-compete he DEFINITELY got a serious chunk of money up front, thus his ability "to make a living" is a dubious claim. Look up sales of Williams-Selyem and Kosta Brown wineries, just a couple of very visible examples, much longer non-compete clauses (10 years) and all enforceable without sellers claiming "duress".

[LasciviousXXX]

Originally Posted by TheRiddick

Non-compete is ALWAYS signed by BOTH parties. Since Leccia had no beef with the duration of the clause when he WILLINGLY signed it I can't imagine a judge now vacating it. If he signed the agreement in bad faith, as now it seems, then he should not be complaining. Besides, if there is a 5 year non-compete he DEFINITELY got a serious chunk of money up front, thus his ability "to make a living" is a dubious claim. Look up sales of Williams-Selyem and Kosta Brown wineries, just a couple of very visible examples, much longer non-compete clauses (10 years) and all enforceable without sellers claiming "duress".

There are many cases of non-compete covenants being deemed unenforceable because of the unreasonable duration even though both parties signed the agreement. Most revolve around the issue of whether it unreasonably restricts the persons ability to make living. Many factors obviously come into focus on these types of cases, such as the range and scope of the restrictions, the type of work itself and whether a new venture would have a negative effect on the company if trade secrets were utilized. This is just to name a few. Not every NCC or CNC is open and shut simply for the fact that both parties signed the agreement. And seeing as how each one is different, the duration also doesn't definitely mean Leccia got a "chunk of money" up front.

Crazy stuff! I am curious as to how this is going to play out.

[NCRadioMan]

The people on cigar boards are a very, very tiny percentage of cigar smokers. If you ask most smokers who are not on cigars boards who Sam is, they have no clue. Same could be said of Pete Johnson. And, they don't care. To think this will effect anyone's bottom line is silly.

Besides, people say alot things on these boards that are total bs and they like to posture to make themselves look important in their own mind.

Also, a company that produces over 13 million cigars a year is not a small cigar maker.

For me, if Sam would have come up with good blends in non-clown cigar sizes, I might have cared about this.

[rizzle]

Originally Posted by NCRadioMan

The people on cigar boards are a very, very tiny percentage of cigar smokers. If you ask most smokers who are not on cigars boards who Sam is, they have no clue. Same could be said of Pete Johnson. And, they don't care. To think this will effect anyone's bottom line is silly.

Besides, people say alot things on these boards that are total bs and they like to posture to make themselves look important in their own mind.
Also, a company that produces over 13 million cigars a year is not a small cigar maker.

For me, if Sam would have come up with good blends in non-clown cigar sizes, I might have cared about this.

Say it isn't so, Greg?

[Ranger_B]

Call me old fashioned but if you sign a contract that is your word. I hold no ill will for someone trying to make a living but if you said you would not compete for 5 years than you wait 5 years. Without knowing what the agreement is I would not hold anything against Oliva or Sam. Never liked the nubs anyway. Now the V and the new cain daytona thats a different story.

[jledou]

My non-legal view on NCs -it mostly depends on the state, some already have president of not recognizing them legitimate claim by the company or not.
The injunction has no bearing on the final outcome as Oliva is able to show they have a document and the judge agreed so he orders the injunction ... he didn't rule on the validity of the document.

[weak_link]

Between the distribution and farms, Oliva is a giant. This isn't going to hurt them a bit.

[NCRadioMan]

Originally Posted by weak_link

Between the distribution and farms, Oliva is a giant. This isn't going to hurt them a bit.

You may be confusing Oliva Cigar Co. and Oliva Tobacco Co. They are not the same.

[weak_link]

Originally Posted by NCRadioMan

You may be confusing Oliva Cigar Co. and Oliva Tobacco Co. They are not the same.

You're correct I was, whoops!

I still don't think they are going to get hurt by this.

[Don Fernando]

Originally Posted by NCRadioMan

You may be confusing Oliva Cigar Co. and Oliva Tobacco Co. They are not the same.

Oliva Cigar Co also has farms