Legal Question in Business Law in New Jersey

Re: What are the ramifications for violating a restrictive covenant?

It depends on the nature of the agreement. If you have a specific agreement in mind and need a review, call or email.

See also: http://info.corbettlaw.net/lawguru.htm

Re: What are the ramifications for violating a restrictive covenant?

Restrictive Covenants are enforceable against doctors in New Jersey as long as they are "reasonable" as to time and place (as well as other circumstances).

But the law disfavors such restrictions and there are many facts which need to be considered when answering the questions you have. I have represented both sides on this very issue and know there is a lot of information that must be obtained before ending with an answer.

You should contact a lawyer to assist in developing an answer. If you are interested, please make an appointment to discuss your case.

Re: What are the ramifications for violating a restrictive covenant?

The physician claiming a violation of the covenant must show that the covenant is reasonable, under New Jersey law. Although the AMA discourages restrictive covenants between physicians, it only declares them unethical if "excessive in geographic scope or duration, or if they fail to make reasonable accommodation of patients' choice of physician." That is essentially the same reasonableness standard applied by the New Jersey courts, because this standard appears to strike the proper balance between an employer's and employee's freedom to contract on the one hand and the public interest on the other. The violator would not likely be "forced out of practice," as you wonder--except the court may impose injunctive relief against any continued violation. The violator may also be responsible for damages, particularly in compensation for loss of patients. Our office can provide precise and efficient representation in such a matter.

Re: What are the ramifications for violating a restrictive covenant?

The other attorneys who answered you have laid out the basics.

What you need is an attorney to sit down with you, look over the documents and analyze your situation.

I do this kind of work. If you would like me to assist, please call my office. I am in Hackensack.

My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.

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