U.S. District Court Judge Saylor recently decided that an employer cannot sue its former employee for breaching a noncompete agreement after the employer breached the contract containing that noncompete provision.

In the case of Dialogo, LLC, et al. v. Bauza, et al., the plaintiff employer brought claims for breach of the noncompete agreement, misappropriation of trade secrets and conversion of company property. The defendant former employee brought a counterclaim for breach of contract alleging that the employer failed to pay him his base salary. Judge Saylor ultimately granted summary judgment in favor of the defendant former employee on all of the plaintiffs claims and the defendant’s claim for breach of contract. The decision explained that the employer, having already breached the contract by failing to pay the former employee’s salary, cannot seek damages based on the former employee’s alleged refusal to comply with the noncompete provision of the contract.