Aero Kool Corp. v. Oosthuizen

District Court of Appeal of Florida
736 So. 2d 25 (1999)

ELI5:

Rule of Law:

An employer's provision of extraordinary or specialized training to a previously unskilled employee constitutes a legitimate business interest under Florida Statute § 542.335, sufficient to justify the enforcement of a reasonable covenant not to compete.

Facts:

In March 1993, Gilbert Oosthuizen, who previously worked at a restaurant with no aviation repair experience, began working for Aero Kool Corporation.
Aero Kool, a company that overhauls aircraft accessories, provided Oosthuizen with over 195 hours of specialized training in repairing aircraft components.
As a result of this training, Oosthuizen became a skilled repairman and obtained a Temporary Airman Certificate from the Federal Aviation Administration (FAA).
Oosthuizen was eventually promoted to repair manager.
On March 4, 1997, as a condition of continued employment, Oosthuizen signed an Employment Agreement that included a six-month covenant not to compete.
In mid-December 1998, Aero Kool terminated Oosthuizen's employment after he failed a random drug test.
In late-January 1999, Oosthuizen began working for Airmark Components, Inc., a direct competitor of Aero Kool.

Procedural Posture:

Aero Kool Corporation filed a verified complaint and an emergency motion for a temporary injunction against Gilbert Oosthuizen in the trial court.
The trial court conducted an evidentiary hearing on the motion.
The trial court entered an order denying Aero Kool's motion for a temporary injunction, finding Aero Kool had failed to prove a legitimate business interest.
Aero Kool Corporation, as appellant, appealed the trial court's non-final order to the District Court of Appeal of Florida, Third District; Gilbert Oosthuizen is the appellee.

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Issue:

Does an employer's provision of extensive, specialized training to an otherwise inexperienced employee create a legitimate business interest sufficient to enforce a covenant not to compete under Florida law?

Opinions:

Majority - Per Curiam

Yes. An employer's provision of extensive, specialized training to an inexperienced employee creates a legitimate business interest sufficient to enforce a covenant not to compete. Florida Statute § 542.335(1)(b) requires a party seeking to enforce a restrictive covenant to prove a legitimate business interest, and the statute explicitly defines 'extraordinary or specialized training' as such an interest. Aero Kool provided Oosthuizen, who had no prior experience, with over 195 hours of specialized training that enabled him to gain FAA certification. This investment in training is precisely the type of legitimate business interest the statute is designed to protect. The trial court's reliance on Austin v. Mid State Fire Equip. was misplaced, as the employee in that case had extensive prior industry experience and did not receive specialized training from the employer. Therefore, the six-month covenant not to compete is enforceable to protect Aero Kool's investment.

Analysis:

This decision clarifies that 'extraordinary or specialized training' is a standalone legitimate business interest capable of supporting a non-compete agreement under Florida law. It provides a strong precedent for employers, particularly in technical or highly regulated industries, to protect their investments in training employees who enter the field without prior experience. The ruling distinguishes between general on-the-job training and the kind of substantial, skill-imparting training that gives an employer a protectable interest, thereby affecting how courts will evaluate the enforceability of such covenants in the future.

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