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2018 Georgia Code 13-8-56 | Car Wreck Lawyer

Link to State of Georgia Official Statute 2018 Georgia Code Annotated (sourced from legal.resource.org)
O.C.G.A. 13-8-56 Case Law from Google Scholar Amendments to OCGA 13-8-56

TITLE 13 CONTRACTS

Section 8. Illegal and Void Contracts Generally, 13-8-1 through 13-8-59.

ARTICLE 4 RESTRICTIVE COVENANTS IN CONTRACTS

13-8-56. Reasonableness determinations restricting competition; presumptions.

In determining the reasonableness of a restrictive covenant that limits or restricts competition during or after the term of an employment or business relationship, the court shall make the following presumptions:

  1. During the term of the relationship, a time period equal to or measured by duration of the parties' business or commercial relationship is reasonable, provided that the reasonableness of a time period after a term of employment shall be as provided for in Code Section 13-8-57;
  2. A geographic territory which includes the areas in which the employer does business at any time during the parties' relationship, even if not known at the time of entry into the restrictive covenant, is reasonable provided that:
    1. The total distance encompassed by the provisions of the covenant also is reasonable;
    2. The agreement contains a list of particular competitors as prohibited employers for a limited period of time after the term of employment or a business or commercial relationship; or
    3. Both subparagraphs (A) and (B) of this paragraph;
  3. The scope of competition restricted is measured by the business of the employer or other person or entity in whose favor the restrictive covenant is given; provided, however, that a court shall not refuse to enforce the provisions of a restrictive covenant because the person seeking enforcement establishes evidence that a restrictive covenant has been violated but has not proven that the covenant has been violated as to the entire scope of the prohibited activities of the person seeking enforcement or as to the entire geographic area of the covenant; and
  4. Any restriction that operates during the term of an employment relationship, agency relationship, independent contractor relationship, partnership, franchise, distributorship, license, ownership of a stake in a business entity, or other ongoing business relationship shall not be considered unreasonable because it lacks any specific limitation upon scope of activity, duration, or geographic area so long as it promotes or protects the purpose or subject matter of the agreement or relationship or deters any potential conflict of interest.

(Code 1981, §13-8-56, enacted by Ga. L. 2011, p. 399, § 4/HB 30.)

Law reviews.

- For article, "Contracts: Illegal and Void Contracts Generally," see 28 Ga. St. U.L. Rev. 21 (2011).

Cases Citing O.C.G.A. § 13-8-56

Total Results: 2  |  Sort by: Relevance  |  Newest First

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North Am. Senior Benefits, LLC v. Wimmer, 906 S.E.2d 373 (Ga. 2024).

Cited 10 times | Published | Supreme Court of Georgia | Sep 4, 2024 | 319 Ga. 641

...the context of subsection (c). Looking to the broader statutory context, the GRCA plainly contemplates that a restrictive covenant’s geographic scope can be described in ways that do not involve geographic terms. For example, under OCGA § 13-8-56 (2), the geographic scope of a restrictive covenant is presumed reasonable if, among other things, it “includes the areas in which the employer does business at any time during the parties’ relationship” and “contains a list of...
...NASB and the Wimmers ended. It would be oddly incongruous to 15 conclude that the non-recruitment provision, though stated in similarly narrow terms as covenants deemed presumptively reasonable in geographic area under OCGA § 13-8-56, is categorically unreasonable because it lacks an express geographic term. Our reading of OCGA § 13-8-53 (a) likewise comports with the GRCA’s “more permissive and flexible approach to restrictive covenants.” Motorsports of Conyers v....
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Motorsports of Conyers, LLC v. Burbach, 892 S.E.2d 719 (Ga. 2023).

Cited 7 times | Published | Supreme Court of Georgia | Sep 6, 2023 | 317 Ga. 206

...399, 400, § 2 (repealing prior OCGA § 13-8-2 (a) (2) and reenacting it in its current form). Through the GRCA, the General Assembly set up a comprehensive scheme for determining whether restrictive covenants are reasonable and thus enforceable. See OCGA §§ 13-8-53 (a), (c); 13-8-56; 13-8-57 (together, providing that reasonable restrictive covenants are enforceable and establishing standards for determining whether a given covenant is reasonable); 13-8-55 (setting pleading and burden of proof requirements)....