Michigan Court Refused to Void Noncompete Motion
Business owners should ensure employment agreements are fully documented and authenticated to withstand potential legal challenges.
Updated on Oct. 14, 2026 in Remote Work
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A Michigan court denied a motion for summary disposition concerning an 18-month post-employment noncompetition agreement. The ruling allows the parties to proceed with further discovery regarding the authentication of the underlying contract.
Why it matters
The case highlights the operational necessity of maintaining signed, easily authenticated employment records. Courts are increasingly scrutinizing the formation and execution of noncompete provisions under state statute of frauds requirements.
The dispute centers on an 18-month noncompetition provision that exceeds the one-year threshold required by MCL 566.132(1)(a). The court has not yet confirmed the existence of a signed writing sufficient to authenticate the agreement.
The players
Copper Hill Inc.
The company pursuing legal claims regarding a post-employment noncompetition covenant.
Brandi Stoddard
A defendant in the case who sought summary disposition of the noncompetition claims.
Nine Nineteen Trade LLC
A defendant in the case involved in the motion for summary disposition.
The details
The court denied the motion under MCR 2.116(C)(10) because the case remains in an early stage of discovery. Operators must be prepared for courts to require specific evidence, including witness testimony and records, to prove that an employment agreement was properly formed and executed. The ruling leaves open the possibility for the defendants to renew their motion once more evidence is collected.
Timeline
October 14, 2026: The court issued the ruling denying the motion for summary disposition.
Market Landscape
This ruling centers on the application of MCL 566.132(1)(a) to restrictive covenants that extend beyond a single year. It follows a pattern where courts require strict authentication of employment agreements before adjudicating their overall enforceability.
Business owners should conduct an immediate audit of all employment contracts to ensure signed copies are readily available and properly authenticated. Consult with legal counsel to verify that your current restrictive covenants comply with state-specific statute of frauds requirements.
The takeaway
The court's decision signals that an unauthenticated contract is a significant liability in employment disputes. Operators should establish a standardized, digital-first process for signing and archiving employment agreements to ensure they hold up in court if challenged.
Further reading
For more on managing employment documentation in a distributed environment, review our Remote Work section.
Source note: This article includes information reported by Michigan Lawyers Weekly.
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