A North Carolina court recently ruled on a dispute between Matt Logan, Inc., doing business as TMRW Wealth, and its former employee, Benjamin Abitz. The case, Matt Logan, Inc. v. Abitz, was filed in the North Carolina Business Court under docket number 25-CVS-25485. The court's decision addresses claims related to breach of contract, misappropriation of trade secrets, and unfair competition.

The ruling is significant as it clarifies the enforceability of non-compete and non-solicitation agreements in employment contracts. It also highlights the challenges companies face in protecting their trade secrets in a competitive marketplace.

Background

The dispute arose after Abitz left his position at TMRW Wealth, where he had worked since October 2020 as a financial planner. During his employment, he signed an employment agreement that included non-compete, non-solicitation, and confidentiality clauses. TMRW Wealth alleged that after Abitz's departure, he breached these clauses by soliciting clients and misappropriating trade secrets.

Abitz had been instrumental in the company's transition from one financial services provider to another. TMRW Wealth claimed that he used confidential information obtained during his employment to gain an unfair advantage and solicit clients from the company. Following his resignation on October 6, 2025, TMRW Wealth filed a lawsuit against Abitz, seeking damages and injunctive relief.

The Ruling

Judge Michael L. Robinson presided over the case and issued a combined opinion on March 26, 2026. The court granted in part and denied in part Abitz's motion to dismiss TMRW Wealth's claims. Specifically, the court ruled against the enforceability of the non-solicitation and non-competition provisions of the employment agreement.

The court stated, "the non-solicitation provision is unreasonable in scope and thus unenforceable," and similarly found that the non-competition provision was overly broad, restricting Abitz from performing any services in competition with TMRW Wealth.

However, the court allowed the claim regarding the nondisclosure provision of the employment agreement to move forward. This means that while TMRW Wealth cannot enforce the non-solicitation and non-competition clauses, it may still pursue claims related to the confidentiality of its trade secrets.

Impact

This ruling has important implications for businesses in North Carolina. It underscores the necessity for companies to draft clear and enforceable non-compete and non-solicitation agreements. The court's decision also reflects a growing scrutiny of restrictive covenants in employment contracts, particularly regarding their scope and reasonableness.

As companies increasingly rely on proprietary information and client relationships, the ruling emphasizes the need for robust protections against the misuse of trade secrets. Businesses must ensure that their agreements are not only legally sound but also tailored to their specific operational needs.

What's Next

While the court dismissed some of TMRW Wealth's claims, the company may still appeal the ruling regarding the non-solicitation and non-competition provisions. Additionally, TMRW Wealth can continue to pursue its claim related to the nondisclosure of trade secrets. The outcome of this case may influence future employment agreements and the enforceability of similar clauses in North Carolina.