Statutory Interpreation

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WI Court of Appeals – District II

Case Name: The Manitowoc Company, Inc. v. John M. Lanning

Case No.: 2015AP1530

Officials: Reilly, P.J., Gundrum and Hagedorn, JJ.

Focus: Statutory Interpreation

This case concerns whether a nonsolicitation of employees (NSE) provision is a restrictive covenant subject to and enforceable under WIS. STAT. § 103.465 (2013-14). The Manitowoc Company, Inc. entered into an agreement with employee John Lanning that prohibited him from directly or indirectly soliciting, inducing, or encouraging any Manitowoc employee “to terminate their employment” with Manitowoc or to “accept employment with any competitor, supplier or customer of Manitowoc.” After Lanning left Manitowoc to work for a competitor, Manitowoc alleged that he worked with his new employer to woo several of Manitowoc’s employees in violation of the NSE provision. Manitowoc filed suit, and the circuit court granted summary judgment to Manitowoc and awarded it attorneys’ fees and costs. Although Lanning takes issue with multiple aspects of the circuit court’s judgment, the only question we need address is whether WIS. STAT. § 103.465 governs the NSE provision, and if so, whether it is enforceable. We conclude that § 103.465 does govern the NSE provision and that it is not enforceable under the law. Accordingly, we reverse the judgment of the circuit court and its award of attorneys’ fees and costs.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.