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Data Management, Inc.

v Greene
Supreme Court of Alaska, 1988

Facts: Data Management (P) hired Greene (D) and signed a contract containing a
covenant that employees will not compete with the company for five years after
termination.

Procedural History: Plaintiff sought preliminary injunction and it was granted. Trial
court granted summary judgment to Greene. Plaintiff appeals.

Issue: May the court modify an overly restrictive covenant not to compete in order to
enforce its reasonable aspects.

Holding: Yes. Reversed.

Reasoning: This court adopts the approach holding that if an overbroad covenant not
to compete can be reasonable altered to render it enforceable, then the court shall do so
unless it determines the covenant was not drafted in good faith.

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