Falcon Ridge, Inc. v. Michael Leon

Court of Appeals of Georgia·Decided August 27, 2025·No. A25A1333·Published

Opinion

THIRD DIVISION

DOYLE, P. J.,

MARKLE and PADGETT, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed.

https://www.gaappeals.us/rules

August 27, 2025

In the Court of Appeals of Georgia A25A1333. FALCON RIDGE, INC. v. LEON.

MARKLE, Judge.

In this action for breach of an employment agreement, Falcon Ridge, Inc.

(“FRI”) appeals from the trial court’s order granting summary judgment to Michael Leon. On appeal, FRI contends that the trial court erred in determining that the restrictive covenants in the employment agreement between FRI and Leon were unenforceable as a matter of law, and refusing to blue pencil the covenants so as to render them enforceable. For the reasons that follow, we reverse the trial court’s order, and remand the case to the trial court for further proceedings consistent with this opinion.

Summary judgment is proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law.

A de novo standard of review applies to an appeal from a grant of summary judgment, and we view the evidence, and all reasonable conclusions and inferences drawn from it, in the light most favorable to the nonmovant.

(Citation omitted.) Crouch v. Bent Tree Community, 310 Ga. App. 319 (713 SE2d 402) (2011). And “[t]he enforceability of a restrictive covenant is a question of law that we . . . review de novo.” American Anesthesiology of Ga. v. Northside Hosp., 362 Ga. App. 350, 354 (867 SE2d 531) (2021).

So viewed, the undisputed facts in the record show that FRI is a horse boarding stable in Woodstock, Georgia that offers riding instruction and training. In June 2017, FRI hired Leon as an independent contractor to provide equestrian riding and training services, and they signed an employment agreement that contained non-solicitation and non-compete clauses. Specifically, paragraph l of the agreement (the non- solicitation clause) provides:

During the period commencing on the date hereof and ending 2 years after the termination of the General Contractor’s employment by Employer for any reason, the General Contractor shall not directly or indirectly induce or attempt to induce any of the employees or anyone employed in any capacity by Employer to leave the employ of Employer, or solicit the business of any client or customer of Employer or any consultant to Employer.

Paragraph 2 of the agreement (the non-compete clause) provides:

During the period commencing on the date hereof, and ending 2 years after the termination of the General Contractor’s employment for any reason, the General Contractor shall not engage in, or own or control an interest in, or act as principal, director or officer of, or consultant to, any firm or corporation (i) engaged in a venture or business substantially similar to that of the Employer or (ii) which is in direct or indirect competition with the Employer within a geographic radius of 25 miles from [FRI].

FRI terminated Leon’s employment in November 2017. Thereafter, Leon began working for two horse stables located in Alpharetta, Georgia that were substantially similar to that of FRI.

FRI sued Leon, asserting claims of breach of contract for violating both the non-

solicitation and the non-compete clauses by soliciting “current and former clients, customers, and employees of [FRI] in an effort to carry this business to his new employer,” and by working at FRI’s competitors within 25 miles of FRI.1 Leon moved for summary judgment, arguing that there was no consideration for the restrictive covenants; the Statute of Frauds prohibits the introduction of parol evidence to supply

1 FRI initially filed a complaint for interlocutory and permanent injunctive relief to enforce the restrictive covenants, but FRI’s request for injunctive relief became moot when the restrictive covenants expired. FRI then filed an amended complaint, which is at issue here.

that essential contract term; and he is not the kind of employee covered by OCGA § 13-8-53 (a) (1)-(4).

At a hearing on the motion for summary judgment, the trial court asked the parties whether the non-solicitation clause is required to be limited in geographic area, and whether the non-compete clause sufficiently detailed the prohibited activities post-termination. After the hearing and post-hearing briefing, the trial court granted summary judgment to Leon. Relying on North American Senior Benefits v. Wimmer, 368 Ga. App. 124, 128-131 (2) (889 SE2d 361) (2023), in which we held that a restrictive covenant must include an express geographic term in order to be deemed reasonable under OCGA § 13-8-53 (a), the trial court concluded that the non-solicitation clause was unenforceable as a matter of law because it did not contain an explicit geographic limitation. While it found the geographic limitation of 25 miles in the non-compete clause to be reasonable, the court determined that clause was unenforceable because it was overbroad. The trial court then found that it could not exercise its discretion to blue-pencil the non-compete clause because to do so would render the clause

meaningless, and it also refused to blue-pencil the non-solicitation clause.2 This appeal followed.

1. FRI argues that the trial court erred in determining that the non-solicitation clause was unenforceable as a matter of law because it does not include a geographic limitation. We agree.

The Georgia Restrictive Covenants Act (“GRCA”), enacted in 2011, recognizes that “reasonable restrictive covenants” may serve legitimate business interests. OCGA § 13-8-50; see also Motorsports of Conyers v. Burbach, 317 Ga. 206, 215 (2) (c) (ii) (892 SE2d 719) (2023) (discussing the GRCA’s “more permissive scheme for construing and enforcing restrictive covenants,” compared to prior decisional law). Additionally, by enacting the GRCA, “the General Assembly desire[d] to provide statutory guidance so that all parties to such agreements may be certain of the

2 Regarding Leon’s claim that there was no consideration for the restrictive covenants, the trial court concluded that part performance “was sufficient to create a factual issue to remove the case from the Statute of Frauds and allow parol evidence to supply missing contract terms[.]” The court further concluded that there were genuine issues of material fact as to whether Leon was a key employee for purposes of the enforceability of the non-compete clause. See OCGA § 13-8-53 (a). The parties do not challenge these findings on appeal.

validity and enforceability of such provisions and may know their rights and duties according to such provisions.” OCGA § 13-8-50. Thus, the GRCA requires a court’s construction of a restrictive covenant “to comport with the reasonable intent and expectations of the parties to the covenant and in favor of providing reasonable protection to all legitimate business interests established by the person seeking enforcement.” OCGA § 13-8-54 (a).

Pursuant to the GRCA, restrictive covenants in employment contracts are permitted and enforceable if they are reasonable in time, geographic area, and scope of prohibited activities. OCGA § 13-8-53 (a); see also Kennedy v. Shave Barber Co., 348 Ga. App. 298, 302 (1) (a) (822 SE2d 606) (2018). Here, the trial court held that the non-solicitation clause was unenforceable solely because it lacked a geographic area. There are two different restrictions in the non-solicitation clause: non-recruitment of employees and non-solicitation of customers. We address each in turn.3

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