2 dealership employees not bound by non-compete agreements

RAPID CITY, S.D. (AP) - A circuit judge in South Dakota has ruled that two former employees of a Rapid City auto dealership are not bound by non-compete agreements signed with the company.

Scott Hanna and Adam Ray were salesmen when they signed non-compete agreements with McKie Automotive Group before it restructured into two companies. The covenants prevented the men from competing with their employers for a one year after leaving.

The men left the companies in early 2013 to manage Gateway Autoplex, LLC, and their former employers reacted by taking them to court to stop them from working at the competing auto group.

Judge Janine Kern, who issued the order before becoming the newest justice in the state's Supreme Court, ruled that the agreements were not enforceable.

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