July 2021 · ORIGINAL INSTRUCTIONAL EXAMPLE

Performance Test: Industrial Sandblasting v. Morgan
Sample Answer & Question Pointers

July 2021 California Bar Examination · An original oral closing argument on a noncompete covenant using the supplied file and library.

By Bar Exam Doctor · Published November 4, 2026

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This is an original, ungraded instructional response. It is not an official State Bar selected answer, a scored student submission, or a claim of attorney review. Use it to compare reasoning and organization after attempting the question. Alternative reasoned analyses may be possible.

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Official source text with our added highlights and numbered notes. The PDF preserves the source layout. For the PT, the task, file, and substantive library pages appear below; the complete packet includes the instructions and dividers.

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Official source page 14

Sylvia Baca and Associates, P.C. 2343 Whitetail Road Columbia City, Columbia MEMORANDUM TO: Applicant FROM: Sylvia Baca DATE: July 27, 2021 RE: Industrial Sandblasting, Inc. v. Samuel Morgan ______________________________________________________________________ The firm represents Samuel Morgan, who works as a sandblaster and bid manager for Columbia Coatings Corporation. Until about three months ago, Morgan worked for a competitor named Industrial Sandblasting, Inc. (Industrial). Morgan had a contract with Industrial that contained a covenant not to compete if Morgan ever left Industrial. Industrial has sued Morgan for breach of contract. Industrial wants to enjoin him from doing any work at all at Columbia Coatings for one year. We agreed to a bench trial and held a hearing three weeks ago. I attach transcripts of the relevant portions of testimony at that hearing. I also attach the relevant provisions of the contract between Morgan and Industrial, dated February 15, 2016. The judge has scheduled us for closing argument on whether the covenants are valid. Please prepare a draft of the oral argument1 that I might present, using the attached cases as authority.

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Excerpt of Transcript from Hearing Industrial Sandblasting, Inc. v. Samuel Morgan Held on July 6, 2021 Testimony of Samuel Morgan . . . . . Att’y Baca: When did you start work at Industrial Sandblasting, Inc.? Morgan: In February 2013. Baca: What did you do for Industrial? Morgan: I specialize in commercial sandblasting. For several years, I operated a crew and did estimates for my old employer, Industrial Sandblasting, Inc. Baca: Describe what commercial sandblasting means. Morgan: We take paint and rust off of buildings, industrial equipment, pipelines, that kind of thing. Then we recoat them with a more durable covering. Baca: How much did Industrial pay you at the start? Morgan: They offered me $35,000 per year and I was glad to get it. Baca: Did you have experience? Morgan: No. It was entry-level, with no contract. They offered on-the-job training. Baca: What happened after you got hired? Morgan: They started me off with the simplest equipment. I figured that out pretty quickly and eventually learned how to operate all of the equipment. I got so good that different foremen would ask for me for the harder jobs. Baca: How did your responsibilities change after those first few years?

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Morgan: About five years ago. The company decided that it would help their business if they could advertise that they had people with certain kinds of certifications. So they paid me while I obtained certifications from the Society for Protective Coatings (SPC), starting six years ago. The SPC has different levels of certification, all labelled QP. In the end, I got a QP1 for external structures, a QP2 for removing hazardous coatings, a QP6 for applying metalized coatings, and a QP8 for coating concrete with polymer. Baca: How long did that take you? Morgan: A few months for each certification. I would find a course that introduced me to how to handle the particular task, then worked with the company to make sure that it had the equipment and management to meet SPC standards. Then we’d apply. An auditor would come and spend a week or so making sure of our capacity, and then we’d get the certification. Baca: How did it help Industrial’s business? Morgan: We started to get a lot of different kinds of jobs, and a lot of different regular customers, mostly because we could handle a bigger range of work. Baca: What other responsibilities did you take on? Morgan: One year, I took over from the foreman of that crew who got sick and couldn’t continue. So the company asked me to take over. I got it done early and under estimate. Both the town and the company were very satisfied. Industrial kept me with that team and promoted me to team manager. Baca: What happened after that? Morgan: My work was always on time and on budget and my people were always happy. One day, someone I knew in the home office asked me to help him put together a bid, as well as an estimate. He wanted to figure out how to make lower bids, and he knew that I had figured out how to do it.

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Baca: How did that work out? Morgan: It worked out well. Eventually the boss, Roger Cole, called me in and said that they couldn’t promote me to the office, because they needed me in the field. But Cole also said that they wanted to keep me, so he offered me a raise and a contract. I accepted. It was good money. Baca: Is that the contract they say you’ve broken? Morgan: Yes. We signed it around 5 years ago. Baca: What happened after you signed? Morgan: Pretty much the same as before, except I was paid more. I kept bouncing between doing jobs and helping with estimates. Eventually, it became a strain. Baca: Why? Morgan: After the contract, I never got another raise. And he kept pushing me to take on more jobs. That was fine for my team; they got overtime. But I was on salary, which stopped going up. Baca: At that point, what did you know about Columbia Coatings? Morgan: Columbia Coatings started up about three years ago, but they were very aggressive about bidding, and often took jobs away from us – not always, but enough to notice. They never got one of my customers. Eventually, I got a call from them. Baca: What did they say? Morgan: They were up front. They said that they wanted to get more business, and they knew that I was valuable to Cole and Industrial. They asked whether I would come to work with them instead. I told them my problem with Cole, and they said no problem. They said that they would pay me $20,000 more,

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give me an office position, and let me work in the field as much or as little as I wanted. Baca: When did this conversation occur? Morgan: About three months ago. I thought it over, then let them know that I would accept. I gave Cole two weeks notice and left. Baca: How did Cole take it? Morgan: He was angry. He asked where I was going, and he got angrier. He made all kinds of threats and cursed me out. He said I’d regret making this decision and that I’d never work in the industry again. Baca: Just a few more questions. When you worked for Industrial, you said you worked only in Columbia City. Is that right? Morgan: I did one job in Sidalia, in the northeast part of the state. I did one job in Crescent, a suburb about 20 miles from Columbia City. Otherwise, all the work was in Columbia City, in the northwest corner of the state. Baca: Where does Columbia Coatings want you to work? Morgan: I have jobs in the south and southeast1. And my office work deals with work all over the state. Baca: How long will it take Industrial to replace you? Morgan: They hired another foreman the week before I left. They already had someone doing the bidding – the man in the home office who asked me to help with bids and estimates. He knew pretty much what I knew. Baca: What would happen if the court applies the non-compete clause to you? Morgan: I won’t have any work at all, after years of experience in the field. Baca: No further questions.

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Att’y Rice: Cross-examination, Your Honor? Judge Yan: Go ahead. Rice: You learned everything you knew about sandblasting at Industrial. Isn’t that right, Mr. Morgan? Morgan: Yes. Rice: They invested a lot in getting you trained and qualified, didn’t they? Morgan: No. They didn’t. Rice: They paid you to get trained, didn’t they? Morgan: No. I paid for the QP certifications myself1; all they did was let me do some of the coursework during work hours. It didn’t cost much, but Cole sure didn’t pay out for it. Rice: Without you, Industrial won’t be able to use those certificates, will it? Morgan: Wrong again. By now, other foremen have gotten certified. Industrial won’t miss me. Rice: Columbia Coatings doesn’t have any of these certifications? Morgan: They do not. But they have foremen who do. Rice: You learned how to estimate job costs at Industrial, didn’t you? Morgan: Yes, I did. Rice: And now you want to use that to harm Industrial, isn’t that right? Morgan: I just want a job that pays me what I’m worth. Rice: No further questions.

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Excerpt of Transcript from Hearing Industrial Sandblasting Inc. v. Samuel Morgan Held on July 6, 2021 Testimony of Roger Cole . . . . . Att’y Rice: What impact will Mr. Morgan’s working at Columbia Coatings have on your business? Cole: A big impact. Morgan was a key employee, especially when it came to pricing out jobs. He’s bringing them expertise that we trained him to have. We can already see the effect it’s having. Rice: What do you mean? Cole: We have lost several bids to Columbia Coatings already – bids we wouldn’t have lost if Morgan weren’t there. Rice: You say that you trained him to have his current expertise. What do you mean? Cole: We paid him for the days that he attended the QP certification courses. We gave him the work that let him figure out how to price jobs. We provided him with the support and equipment to work his projects. He got all of that while working for us. Rice: What do you want this court to do? Cole: Enforce the contract, keep him from working in the industry for one year, anywhere in Columbia. Rice: Is that all?

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Cole: At a minimum, the court should keep him out of Columbia City, at least for long enough for us to train someone the way we trained him. Rice: You would accept that change? Cole: Yes. He agreed to what’s in the contract, so he ought to accept less. Rice: No further questions. Baca: No cross-examination, Your Honor.

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Employment Contract The parties to this contract are Industrial Sandblasting, Inc. (“Employer”) and Samuel Morgan (“Employee”). . . . . . 11. For a period of one (1) year after the termination of Employee’s employment for any reason, Employee will not own, operate, or work at any business in direct competition with Employer by providing sandblasting or similar industrial cleaning services to industries and businesses anywhere in the State of Columbia. . . . . . ___________________________ __________________________ Samuel Morgan, Employee Michelle Abebe, President Industrial Sandblasting, Inc. February 15, 2016 February 15, 2016 Date Date

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Strom v. Knox Broadcasting Corporation Columbia Supreme Court (2014) This appeal arises from a trial court decision upholding the non-compete provisions of an employment contract between George Strom and Knox Broadcasting Corporation. Strom left Knox Broadcasting Corporation to work for a competing broadcaster, WCAP-TV. WCAP-TV brought the action below to invalidate the non-compete provision and permit Strom to appear on air for WCAP- TV. The trial court findings indicate that, from 2008 until 2013, George Strom was employed by Knox Broadcasting Corporation (“Knox”) as a meteorologist and “television personality.” That contract ended on September 1, 2013 and included the following contractual provision: Employee shall not, for a period of one hundred-eighty (180) days after the end of the Term of Employment, allow his/her voice or image to be broadcast ‘on air’ by any commercial television station whose broadcast transmission tower is located within a radius of thirty-five (35) miles from Company's offices in Columbia City, Columbia. During Strom's employment with Knox, Knox spent in excess of a million dollars promoting Strom's name, voice, and image as an individual television personality and as part of Knox’s Action News Team. Strom is one of the most recognized television personalities in the Columbia City area. Local television personalities are strongly identified in the minds of television viewers with the stations upon which they appear. In April 2013, Strom entered into a five-year contractual agreement with WCAP–TV, a competitor of Knox, to work for WCAP as a meteorologist and “television personality” when his contract with Knox expired.

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After learning of Strom’s prospective departure, Knox instituted a “transition plan” to reduce the impact Strom's departure would have on the station's image. That plan depended on Strom not appearing on air for WCAP-TV for at least six months after leaving Knox. To permit Strom to appear on air for WCAP-TV during those six months would disrupt Knox’s plans for a transition to a replacement for Strom. Strom’s contract with WCAP-TV does not require him to appear “on air” during the first six months of his employment. Under this contract, Strom would perform substantial duties and services to WCAP–TV for which he is being compensated. To permit Strom to appear on air, WCAP-TV would take advantage of the substantial investment Knox had put into developing Strom’s public persona, in which Knox had a legitimate and protectable interest. Finally, Strom will suffer no financial harm from staying off the air during the six months following his departure from Knox. This case requires us to apply Columbia Stat. Ann. § 24-6-53(a), which states in relevant part: (a) Enforcement of contracts that restrict competition during the term of a restrictive covenant, so long as such restrictions are reasonable in time, geographic area, and scope of prohibited activities, shall be permitted. The statute applies to contracts between employers and employees and thus applies to the contract between Strom and Knox. Under the statute, we should uphold such a covenant only when strictly limited in time, territorial effect, and scope of the prohibited activities. In doing so, we must weigh the interest the employer seeks to protect against the impact the covenant will have on the employee. The provision in this contract should be upheld. The time limit is appropriate, restraining Strom from appearing on air for six months, during which time he will

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not appear on WCAP-TV in any case. It permits Strom to appear on air after a transition period tailored to allow Knox to develop an alternative broadcasting identity. The geographical scope is appropriate, applying only to that broadcast area surrounding Columbia City. The provision restricts Strom’s activity in the same media market as that in which his former employer operates. The scope of the services covered is appropriate; the contract prohibits Strom from using an on-air personality in which Knox has a legitimate and protectable interest. Strom remains free to work for WCAP-TV as an off-air consultant. Finally, enforcing the covenant in Strom’s contract with Knox represents a fair balance of a distinct and substantial harm to Knox, when compared to a relatively minor and incidental harm to Strom. We affirm.

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Fawcett Railway Relief, Inc. v. Columbia Rail Services, Inc. Columbia Court of Appeal (2015) Fawcett Railway Relief, Inc. (“Fawcett”) appeals from a declaratory judgment that voided a noncompetition covenant with Peter Markham (“Markham”), a former employee, and his new employer, Columbia Rail Services, Inc. (“CRS”). Fawcett is in the business of providing emergency disaster remediation services for railroads and industries with rail siding and rail yards in the lower 48 states, Canada, and Mexico. Markham began work for Fawcett in 2006 in Illinois, and over the course of seven years provided services in parts of Tennessee and Kentucky before locating in Columbia and performing services entirely within this state. On December 2, 2011, after the move to Columbia, Markham entered into a renewed employment agreement with Fawcett that contained a non-compete provision. The non-compete provision prohibited Markham from working for three years in all of Florida, Columbia, Illinois, Ohio, Georgia, Kentucky, or Tennessee in any capacity. On June 1, 2013, Markham left Fawcett and went to work for CRS, a direct competitor. Markham has worked for CRS only in Columbia. On April 7, 2014, CRS instituted this declaratory judgment action against Fawcett to have the covenant voided. The trial court agreed with CRS that the covenant involved was overly broad as to geographical scope, time period, and scope of services. It invalidated the covenant. Fawcett appealed. The parties agree that Markham was an employee under this statute regulating covenants not to compete, Columbia Stat. Ann. § 24-6-53(a), and thus that the statute applied to this contract.

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Fawcett contends that the trial court erred in invalidating the restrictive covenants as to their geographic scope, the scope of the services prohibited, and the time period of the restriction. For the reasons that follow, we disagree. Geographic Scope This geographic scope far exceeds the area within which Markham worked for Fawcett. This Court will accept as prima facie valid a restriction that covers the territory where the employee worked and the employer does business. However, a restriction that extends that territory to areas in which the employee did not work is overly broad on its face, absent a strong justification other than the desire not to compete with the former employee. This restrictive covenant prohibited Markham from providing competing services in Florida, Columbia, Illinois, Ohio, Georgia, Kentucky, or Tennessee. The trial court’s finding of fact noted that no east-west or north-south mainline railroad east of the Mississippi could operate without passing through this territory. Markham did not perform work in the entire eastern seaboard and in fact, performed work only in a limited area of some of the states listed in the restrictive covenant. A restriction that covers a geographic area in which the employee never had contact with customers is overbroad and unreasonable. This covenant is unreasonably broad because it covers a region and areas of states where the plaintiff never worked. Scope of Activity The restrictive covenant in this case prevented Markham from performing work for any competitors of Fawcett both in the provision of emergency remediation services and “in any other capacity whatsoever.” Under our cases, a former employer may validly restrict an employee from performing services for a competitor that are identical to those performed for the

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former employer. Our courts have approved as reasonable restrictions that specifically state those activities related to the employer's business in which the employee was trained by the employer or worked for the employer. Such a restriction protects the employer's interests from competition in that area of service. By contrast, a restrictive covenant that prohibits work for a competitor “in any capacity” does not protect a legitimate interest of the employer and imposes a greater limitation on the employee than is necessary. In this case, the contract prohibits Markham from working for a competitor in any capacity, including activities that have nothing to do with the services that he performed for Fawcett. This provision is unreasonably broad. Duration of Restriction The restrictive covenants in this case restricted Markham from competitive activity for a period of three years after the termination of his employment with Fawcett. Our cases do not state a specific time period past which a given time restriction is per se unreasonable. Instead, the cases require employers who seek to uphold a time restriction to demonstrate how the restriction is necessary to the protection of the employer during the employee’s transition to work for a competitor. An employer must prove specific facts1 and circumstances that support a finding of necessity. Absent such proof, our courts have invalidated time periods as short as one year or less. The trial court in this case found that Fawcett offered no proof of the relationship between the time restriction and Fawcett’s need for protection from competition. Moreover, we note that in none of our cases have we or our sister courts approved restrictions of longer than two years. We see no error in the trial court’s conclusion that the three-year restriction in this case was unreasonable.

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“Blue Pencilling” Fawcett argues that the trial court erred in failing to “blue pencil” this covenant by modifying it to a more reasonable form, consistent with the situation and intentions of the parties. Fawcett argues that the court should have modified the provisions as follows: to restrict them to territories in which Markham had worked; to cover only the services that Markham had provided; and to be limited to the maximum time period approved by our prior cases (two years). We disagree. The facts indicate that the covenants in this case bore no relationship to Fawcett’s need for protection from competitive practices after Markham left its employ. This covenant not to compete is invalid and should not be revised1. In such a situation, a trial court does not err in refusing to “blue pencil” the contract. For all of the foregoing reasons, we affirm.

Before you write: issue outline

  1. Argue covenant validity for Morgan using the supplied Columbia cases, rather than outside noncompete law.
  2. Address time, territory, activity, and the employer-employee balance separately.
  3. Confront the training and lost-bid evidence, then explain why the court should not rewrite this covenant.

Your Honor, Industrial asks this Court to remove Mr. Morgan from his livelihood for one year throughout Columbia. Its contract prohibits him from owning, operating, or working at any competing sandblasting or similar industrial-cleaning business anywhere in the state. Under Strom v. Knox Broadcasting Corporation and Fawcett Railway Relief v. Columbia Rail Services, a restriction must be strictly limited to an employer’s demonstrated protective need in time, territory, and activity. This covenant meets none of those requirements. We ask the Court to hold it invalid and deny the requested injunction.

A legitimate interest must be distinguished from an interest in avoiding ordinary competition

Industrial trained Morgan when he entered the field and benefited from his substantial skill. Mr. Cole fairly points out that Industrial paid his wages while he undertook some certification coursework, supplied equipment and support, and gave him opportunities to learn estimating. We do not ask the Court to disregard that investment. But an investment in an employee’s general development is not a blank check to prohibit every later competing job. The cases require a restriction actually tailored to a legitimate interest.

In Strom, the employer spent more than a million dollars developing a particular public persona that viewers identified with its station. A six-month on-air restriction let that station transition its identity, while the employee continued paid off-air work. The harm protected, the transition period, the specific activity, and the employee’s continuing livelihood fit together.

Morgan is not transferring a public persona that Industrial created and must replace in viewers’ minds. He learned an occupation and became exceptionally effective in it. The record identifies no confidential customer list he took, protected document he copied, or trade secret he disclosed. Cole says a competitor now wins bids it would not have won without Morgan. That shows competitive value, but does not by itself establish that the statewide, all-work, one-year restraint is necessary or reasonable.

Morgan paid the actual QP certification costs himself, according to his cross-examination testimony. Industrial paid his time and supplied the practical working environment; those are distinct contributions, not a reason to ignore either account. Other Industrial foremen have since obtained certifications, and Columbia Coatings also has certified foremen. This is not proof that Industrial loses the unique ability to compete unless Morgan is excluded from the entire industry. The requested injunction substantially exceeds any demonstrated need to protect the company’s training or continuity.

The statewide territory exceeds Morgan’s work and customer contact

Fawcett treats as prima facie valid a territory where the employee worked and the employer does business. It rejects territory reaching areas where the employee did not work or have customer contact without a strong justification beyond a desire not to compete. An employer’s broad business reach does not automatically define the permissible restriction on this employee.

Morgan worked almost entirely in Columbia City in the state’s northwest corner. He identified one Sidalia job in the northeast and one Crescent job about twenty miles outside Columbia City. That is not statewide customer contact. His current field assignments are in the south and southeast, where this record supplies no former Industrial assignments or cultivated customer relationship. The clause nevertheless excludes him from competing work everywhere in Columbia.

Industrial may emphasize that estimating and office work can affect bids statewide. But the former work and customer exposure must be shown, not inferred simply because bidding skills are portable. There is no specific evidence that Morgan formerly handled Industrial’s customers or confidential bids in every statewide market. His new office work’s statewide reach does not retroactively make the old restriction appropriately geographic.

Fawcett involved a still larger multistate territory, but its reasoning is not a rule that a single-state covenant always is valid. The defect is the mismatch between the restriction and the employee’s actual former territory. That mismatch is present here.

The prohibited activities exclude more work than necessary

The clause bars Morgan from owning, operating, or working at any directly competing sandblasting or similar industrial-cleaning business. Its language identifies a category of businesses rather than carefully limiting the tasks Morgan may perform for them. Industrial’s requested relief confirms the breadth: it wants to stop him from doing any work at Columbia Coatings.

Fawcett explains that an employer may restrict services identical to those the employee performed, but cannot prohibit work for a competitor in any capacity without a demonstrated protective basis. Under this clause Morgan could not take a role unrelated to customers, bids, or the specific trained functions on which Industrial relies. The phrase “similar industrial cleaning” also sweeps beyond a defined service or account.

Industrial can argue that the clause should be read as covering only competing services and that Morgan actually performs the sandblasting and bidding he performed before. Even on that narrower reading, the record still does not connect every prohibited service throughout Columbia with a necessary protective interest. More fundamentally, the injunction Industrial seeks would not preserve unrelated work or otherwise give Morgan the sort of paid alternative central to Strom. This is a restraint on livelihood, rather than a focused transition limit on a particular protectable activity.

One year is not self-validating

Fawcett expressly rejects a fixed presumptively valid duration. Employers must prove specific facts showing how the period is needed for a transition; restrictions of a year or less can fail without that showing. Industrial therefore cannot justify its clause merely by noting that one year is shorter than the three years rejected in Fawcett or below the longest period discussed in prior cases.

The actual replacement evidence undermines necessity. Industrial hired another foreman the week before Morgan left. It already employed the office colleague who asked Morgan to help with bids and who, according to Morgan, knew substantially what he knew. Other foremen hold relevant certifications. Industrial can disagree about whether those substitutes fully replace his talent, but Cole supplied no particular training schedule, transition plan, client-transfer period, or reason an entire year is required.

Strom’s six months corresponded to an established identity-transition plan. Here Cole asks for enough time to train someone but does not quantify or explain that need against the replacements already present. The contract automatically applies for one year after any termination, regardless of the actual circumstances. That is the absence of a tailored evidentiary basis that Fawcett found fatal.

The balance strongly favors allowing Morgan to work

Strom requires weighing the employer’s protected interest against the employee’s harm. Industrial describes lost bids and Morgan’s valuable expertise. Those are real business concerns, but they do not establish a right to suppress ordinary competition over an entire state after already hiring a foreman and retaining bidding staff.

Morgan testified that enforcement leaves him without work after years of developing this occupation. He moved for a $20,000 increase, an office position, and flexibility in field work after Industrial increased his workload without another raise. Those employment choices do not immunize a genuine covenant breach, but they explain why a blanket employment ban causes substantial hardship. Unlike Strom, he has no demonstrated fully compensated alternative role that the restriction permits.

Columbia Coatings competed aggressively before hiring him and took jobs from Industrial then, too. Morgan testified it had not taken one of his customers during that earlier period. Cole identifies lost bids after the move, but provides no customer-specific evidence converting Morgan’s general ability to estimate work into an exclusive Industrial asset. The balance does not support disabling a skilled worker merely because his former employer would prefer not to face his competition.

The Court should not reconstruct the bargain

Cole alternatively asks for a Columbia City restriction lasting long enough to train a replacement. Fawcett rejected a request to rewrite an unreasonable covenant into an appropriate territory, set of services, and duration where the original restrictions bore no relationship to the employer’s protective need. That decision does not establish that every judicial modification is always forbidden. It does establish that an employer is not entitled to have the court supply the missing tailored agreement and proof.

The proposed alternative still leaves the length undefined and does not cure the all-capacities problem. Nor does it explain why the replacements already identified require a new training interval or why a client-specific restriction would be insufficient. Enforcing “less” than a contract says is not necessarily reasonable simply because the original demand was greater.

This covenant was written as a statewide exclusion from work in a whole competing business, not as a measured transition plan. Its defects involve all three required dimensions, and the hearing did not supply the missing relationship between those dimensions and a demonstrated need. Consistent with Fawcett, the Court should decline to revise it and hold it invalid. We respectfully request denial of Industrial’s requested injunction so Morgan may continue his work at Columbia Coatings.

Sources and further comparison

The official question controls its facts and jurisdiction. These responses address the exam scenario; subsequent legal changes and other fact patterns may require a different analysis. The PT uses the supplied fictional Columbia library, which must not be replaced with outside law.