Senate President Don Samuelson, DFL-Brainerd, said today he'll work with Attorney General Mike Hatch to draft legislation that will address problems caused by non-compete clauses in business contracts.
He expressed disappointment at Judge Richard Zimmerman's decision on Tuesday to not issue a temporary restraining order in the case involving the former Potlatch plant. A court date will now be set to determine whether the non-compete clause in the printing papers division sale agreement between Potlatch and Sappi unreasonably restrained trade and violated state law.
"When the judge failed to issue a restraining order on the very rigid no-compete clause in the contract between Sappi of South Africa and Potlatch Paper Co., he just may have made it more difficult for the sale of the Brainerd plant," Samuelson said. "The best we can hope for is a quick trial but I'm told it will likely take 60 to 90 days. Every week that goes by makes things look dimmer."
Samuelson questioned whether such non-compete clauses should be allowed in Minnesota and questioned what company would be next in what he termed the big corporate race to control all markets..
"I intend to draft legislation to tighten up this practice so a proper and full hearing can be held to determine what impact these contracts have on business and jobs in Minnesota," he said.
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