Bennett v. Les Schwab Tire Centers of Oregon, Inc.

Plaintiff, a former employe of defendant, seeks recovery of bonuses that accrued during his employment pursuant to a written profit-sharing agreement. Finding that plaintiff forfeited the balance of his bonuses under a valid liquidated damages clause 1 in a noncompetition covenant in the agreement, the trial court entered summary judgment in favor of defendant. On appeal, plaintiff assigns as errors the findings of the trial court that (1) the employer had a legitimate interest entitled to protection by a restrictive covenant; and (2) the liquidated damages clause was not a penalty, but a…