In a surreal dance move right out of the movie Footloose a Texas judge has ordered Former Aurthur Murray Dance instructor Eric Rush to jail for violating a non-competition agreement. Rush was apparently dancing too close to to his former employer Arthur Murray Dance Studios. The non-competition agreement he signed prohibited him from soliciting or teaching dance clients within 25 miles of his former employer. Arthur Murray also alleged that Mr. Rush had violated the employment agreement/non-competition agreement by creating a Web site advertising his work, posting Craigslist notices offering his services and contacting Arthur Murray students. The only clients Rush will be teaching for the next 30 days will be his cell-mates at the Collin County Jail. We can assume there will be no “dirty dancing” at least no voluntarily on Eric’s part. Mr. Rush’s attorney made the following statement:
“they are treating Mr. Rush as if he’s stolen Coca-Cola’s secret formula. “They’re killing a fly with a bazooka,” Mr. Magary said. “They’ve gone to such extreme lengths … to put one person who’s a lowly dance instructor out of work.”
Mr. Rush’s attorney has apparently not been watching the news. As the economy continues to slide and business becomes harder to generate, losing one client at at time can quickly add up to bankruptcy. To Arthur Murray and other businesses struggling to survive a recession headed into a depression, losing clients to those who have agreed not to steal them is in fact the equivalent of stealing the Coke formula. When were they supposed to pull out the bazooka? After they filed for bankruptcy? Rush had been warned numerous times . He continued to violate the non-competition agreement even after a court order was entered. His attorney had better get used to these type of tactics if he is going to continue to handle non-competition litigation. Agreements not to compete and solicit clients of a former employer are serious business. They will become much more so as employers, facing declining revenues in this brutal economy become more aggressive in protecting their business interests. While the facts of this case seem humorous there is a serious lesson to be learned here. It can be best summed up in the words of Guido The Killer Pimp:
“In times of economic uncertainty, never ever fuck with another man’s livelihood.“
October 19th, 2008 at 7:51 pm
“Agreements not to compete and solicit clients of a former employer are serious business.”
They are civil matters. I have to assume that the violation of court order is what got him into real trouble. A no compete clause (I have signed a few) is rarely worth pursuing. It wouldn’t end in a jail sentence either way and for punitive damages you would have to prove that it affected the business, not that he simply violated it.
I honestly have to think something is miss-stated here, there’s no way he could have gone to jail simply for the breach of contract. It states that he had been ordered to stop by a court before, so I’m guessing that’s what he was incarcerated for.
October 21st, 2008 at 3:30 am
This is not about jail time from teaching dance. It is about making the judge mad. I assume there is something in the non-compete that says; we teach you, you don’t teach for a year with-in 25 miles of us after you leave.
From the Dallas Morning News:
“Last week, a Collin County district judge ordered Mr. Rush to serve 30 days in the county jail for contempt of court after violating an order prohibiting him from teaching dance lessons within 25 miles of a Plano dance studio.”
October 21st, 2008 at 12:54 pm
ok- a little commentary for all the form over substance hypertech people. Yes, he is in jail for contempt because he violated a court order(allegedly repeatedly). What was the substance of the court order? Don’t violate the non-compete. What did the non compete say? Don’t solicit clients within 25 miles and current client of Aurthur Murray. So one more time…. Why is he in jail?
December 27th, 2008 at 2:53 am
People in America need to realize jus what got America in this shape…”cheap” yes so-call cheap items from a foreign land.
quote*Wal-Mart firmly believes in local procurement. We recognize that by purchasing quality products, we can generate more job opportunities, support local manufacturing and boost economic development. Over 95% of the merchandise in our stores in China is sourced locally. We have established partnerships with nearly 20,000 suppliers in China. *end quote!
Now! if there be 182 country’s making items for the world to buy and they have only 5% of the pie in China…duh! This company makes the nice people of China support their currency(yuan) by keeping it in their country working for the people there…. but with the “yuan” going up in value and the US dollar going down…all the foreign items that the American consumer buys thinking it is cheap has went up in price.
People…its all about the currency and to keep a currency strong you got to keep it floating around the country you live in so it can work for you. For the past 12 years all them US dollars are being shipped overseas to a foreign bank and with the American worker not making anything for the foreigner to buy the “we the people” have to turn to the “second” largest employer in America(Uncle Sam) to sell “we the people” debt in order to get all them dollars back!
50 years ago a foreigner would had given their left nut for a US dollar or a Hershey’s chocolate bar and today the same foreigner has got Uncle Sam and the American consumer by both all the while Hershey is moving the chocolate factory to Mexico. Wake up! America and think “MADE IN AMERICA.”