Two restrictive covenants gone in one ruling - and the drafting flaw is everywhere
A North Carolina court has struck down a wealth firm's non-compete and non-solicit at the pleading stage, faulting overbroad drafting.
The North Carolina Business Court has dismissed the central restrictive covenant claims brought by Greensboro-based Matt Logan, Inc., which does business as TMRW Wealth, against a former financial planner. Chief Business Court Judge Michael L. Robinson ruled on June 9, 2026 that both the non-competition and non-solicitation provisions in the planner's employment agreement were facially overbroad and unenforceable.
For HR leaders and in-house counsel who oversee restrictive covenants, the decision is worth reading carefully. It is a clean illustration of how quickly poorly drafted clauses can collapse - even before any factual record is built.
The dispute came out of the firm's planned switch from broker-dealer Cetera to Kestra, projected for sometime in October 2025. According to the order, financial planner Benjamin Abitz took part in attorney-client meetings about the transition, then resigned on October 6, 2025, the day before the switch was to take effect. The firm alleges that on transition day, Abitz contacted its clients and left them under the impression the firm was no longer offering financial advisory services. Three days later, an email went to clients on behalf of Abax Capital, LLC, a new entity Abitz had formed, stating the entity had decided to...
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