Jim Daws Trucking, LLC v. Daws, Inc.
CourtCourt of Appeals for the Eighth Circuit
Date FiledAugust 31, 2026
Docket25-1915
StatusPublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
United States Court of Appeals
For the Eighth Circuit
___________________________
No. 25-1915
___________________________
Jim Daws Trucking, LLC
Plaintiff - Appellee
v.
Daws, Inc.; James R. Daws; Lana R. Daws; Daws Trucking, Inc.; Columbus
Transportation & Logistics, LLC
Defendants - Appellants
____________
Appeal from United States District Court
for the District of Nebraska - Lincoln
____________
Submitted: March 19, 2026
Filed: August 31, 2026
____________
Before SHEPHERD, ERICKSON, and GRASZ, Circuit Judges.
____________
SHEPHERD, Circuit Judge.
After purchasing a trucking company through an asset purchase agreement
(APA) that included a noncompete provision, Jim Daws Trucking, LLC, (JDT)
initiated this action against the sellers, James (Jim) and Lana Daws, their company,
Daws, Inc., and two other companies Jim Daws had an ownership interest in, Daws
Trucking, Inc., and Columbus Transportation & Logistics, LLC, (collectively
Defendants) alleging that they were engaging in a competing trucking business in
violation of the noncompete provision in the APA. JDT also sought a temporary
restraining order (TRO) or a preliminary injunction, and, after a hearing, the district
court1 immediately granted a TRO in part before later entering an order granting a
preliminary injunction. Defendants appeal, asserting that the district court
erroneously granted the preliminary injunction. Defendants also assert that the
district court erred in ordering Defendants to tender $500,000 to JDT as a form of
injunctive relief and by setting an inadequate bond. Having jurisdiction under 28
U.S.C. § 1292, we affirm.
I.
In May 2022, JDT and Daws, Inc., executed an APA for the sale of a trucking
company that specialized in hauling over-the-road flatbed freight. Per the APA,
Daws, Inc., sold the trucking business to JDT for a purchase price of $12 million,
with JDT to pay Daws, Inc., $8 million upfront and the balance financed by the seller
and to be paid over a period of 5 years. The APA detailed that the sale included the
“trade, business name, goodwill, and all other intangible assets . . . and all other
assets of the Business.” The APA also contained a noncompete provision, which
provides:
It is understood and agreed that $4,500,000 of the purchase price shall
be allocated to the goodwill of the Business, and in connection with the
sale to the Buyer of the goodwill, Seller agrees that it shall not, either
directly or indirectly, carry on or engage in, either as an owner, part
owner, manager, operator, employee, agent, or other participant, the
business of trucking in the continental United States of America, for a
period of no less than five (5) years from the date of this Agreement, so
long as Buyer or any other person deriving title to the goodwill of said
business from Buyer carries on a like business in such area.
1
The Honorable Susan M. Bazis, United States District Judge for the District
of Nebraska.
-2-
By affixing their signatures to this Agreement, Seller’s Shareholders
join in the foregoing noncompetition agreement and agree to be
individually bound thereby.
The APA bore the signatures of Jim Daws, as president of Daws, Inc., Jim and Lana
Daws in their capacities as shareholders of Daws, Inc., and Ricardo (Rick)
Fernandez and Ricardo (Ricky) D. Fernandez on behalf of JDT. After the sale of
the business, Jim Daws became a salaried employee of JDT. However, by 2024, the
working relationship between Jim Daws and Rick Fernandez had deteriorated, and,
after failed attempts to buy back the company, Jim Daws informed Rick Fernandez
in August 2024 that he was leaving JDT because he was planning to retire. Prior to
his retirement from JDT, Jim Daws engaged in conversations with individuals from
other trucking companies about working together, and he indicated his plans to
continue working with some JDT personnel after he left JDT. Since Jim Daws left
in September 2024, JDT has lost most of its office personnel and over half of its
drivers.
In October 2024, JDT initiated this action, asserting claims for breach of the
APA, breach of fiduciary duty, and tortious interference, and seeking declaratory
and injunctive relief. In its complaint, JDT alleged that Jim Daws and Daws, Inc.,
were violating the noncompete provision of the APA by competing against JDT.
JDT also alleged that Daws, Inc., refused to transfer business assets to JDT that were
sold under the APA, and that Jim Daws and Daws, Inc. “prepared to compete,
intend[ed] to compete, and on information and belief are competing against JDT in
violation of the non-compete provision of the Asset Purchase Agreement.” After
JDT filed suit, it learned that Jim Daws had been communicating with former JDT
employees about engaging in the hauling of flatbed freight with another entity, Loyal
Trucking, LLC. Through its attorneys, JDT sent Jim Daws’s attorneys a letter
demanding compliance with the noncompete provision and that Jim Daws cease and
desist all activities in the trucking business. Jim Daws, through his attorneys,
responded that neither he nor his wife, Lana, nor any of their companies, would have
any ownership interest in any business pursuits of the former JDT employees with
whom Jim Daws had been communicating.
-3-
JDT then filed a motion for a TRO and a preliminary injunction and sought
expedited discovery. The district court held a hearing, and it issued a TRO that same
day and granted expedited discovery. The TRO prohibited Jim Daws and anyone
acting on his behalf or in concert with him from “engag[ing] in the business of
trucking in the continental United States of America” and specifically prohibited him
from engaging in the venture described in the communications between Jim Daws
and the former JDT employees. The TRO also prohibited Jim Daws from
“provid[ing] any other company advice as to how to operate a trucking company,”
but allowed Jim Daws to continue to operate his other businesses that were in
existence at the time the APA was executed. The TRO order also stated that it “will
remain in effect until the Court rules on JDT’s request for a preliminary injunction.”
The district court later issued an order granting JDT a preliminary injunction.
The district court first determined that JDT had shown a likelihood of success on the
merits on the breach of contract claim based on the noncompete provision in the
APA. In doing so, it concluded that the noncompete provision was valid and
enforceable under Nebraska law. The district court noted that the noncompete
provision was drafted by Jim Daws’s attorneys and that the APA made clear that
part of the sale was for the goodwill, i.e., Jim Daws’s name and reputation in the
trucking industry, which extended beyond flatbed trucking to the entire trucking
industry. The district court also concluded that, because JDT was a nationwide
company, the geographic restriction of the noncompete to the entire United States
was reasonable because it was “coextensive with the employer’s trade.” The district
court also concluded that the five-year duration of the noncompete provision was
reasonable “considering the size and type of business purchased.” The district court
rejected Defendants’ additional argument that even if the noncompete were
enforceable, there was no evidence that it had been breached, specifically detailing
the evidence showing that Jim Daws had engaged in communications with JDT
employees about working on a new business venture in the trucking industry. The
district court also concluded that it did not need to consider the likelihood of success
on the merits of the breach of loyalty claim because it had concluded that JDT was
likely to prevail on the merits of the breach of contract claim.
-4-
Turning to the issue of irreparable harm, the district court found that JDT had
satisfied this factor, identifying the significant portion of the purchase price that was
specifically attributed to the business’s goodwill. The district court also cited Eighth
Circuit case law explaining that loss of intangible assets such as goodwill can
constitute irreparable injury and that the monetary harm attributable to such an injury
is nearly impossible to quantify. The district court further found that the balance of
the harms favored JDT because the injury to Jim Daws—not being able to engage in
the trucking business—was self-inflicted and the public has an interest in the
enforcement of contractual obligations. Based on the foregoing, the district court
concluded that the restrictions in the TRO should remain in effect, “but on a broader
scale.” It then recited the broader restriction as follows:
Jim, and anyone acting on his behalf or in concert with him, will be
barred from engaging in the business of trucking in the continental
United States. Jim may not provide any company advice as to how to
operate a trucking company. Jim will be prohibited from providing
financial support to anyone carrying out the business plan for Loyal.
Jim may continue to operate his other companies that only lease real
estate or lease or sell trucks to other companies, except that these
companies may not lease or sell trucks or trailers to Loyal or otherwise
use their assets to support Loyal.
The district court also ordered Jim Daws to release roughly $500,000 in funds held
in an American National Bank (ANB) account to JDT. This account, which Jim
Daws controlled, was used by JDT to operate its business, and the district court held
that the funds belonged to JDT but could be used only for JDT expenses. Finally,
the district court ordered JDT to pay a bond in the amount of $480,000, which
represented 12 times the roughly $40,000 monthly income that one of Jim Daws’s
other trucking businesses was bringing in, noting that there was little evidence in the
record of Loyal Trucking, LLC’s income. Three days later, the district court
amended its order to add additional limitations regarding Loyal. This appeal
follows, with Defendants challenging the preliminary injunction, the order to release
funds to JDT, and the bond amount set by the district court.
-5-
II.
First, Defendants assert that the district court erred in granting JDT’s motion
for a preliminary injunction. Defendants assert that the district court erroneously
concluded that the noncompete provision is enforceable, and that this flawed premise
led the district court to erroneously conclude the relevant factors warranted the
issuance of a preliminary injunction. “When a party appeals a district court’s
preliminary injunction, . . . our standard of review is ‘layered.’ We review the
district court’s conclusions of law de novo, its findings of fact for clear error, and its
application of the law to the facts for abuse of discretion.” Cigna Corp. v. Bricker,
103 F.4th 1336, 1342-43 (8th Cir. 2024) (citation omitted).
“In deciding whether to grant preliminary injunctive relief, courts consider the
four Dataphase 2 factors: ‘(1) the threat of irreparable harm to the movant; (2) the
state of balance between this harm and the injury that granting the injunction will
inflict on other parties’ litigant; (3) the probability that movant will succeed on the
merits; and (4) the public interest.’” Schmitt v. Rebertus, 148 F.4th 958, 966 (8th
Cir. 2025) (citation omitted). Defendants’ arguments on appeal regarding the district
court’s evaluation of the Dataphase factors are premised entirely on their argument
that the noncompete provision is unenforceable under Nebraska law. While
Defendants focus much of their briefing on their assertion that, without an
enforceable noncompete provision, JDT cannot show it is likely to prevail on the
merits, they also assert that the absence of an enforceable noncompete provision
dictates that the remaining Dataphase factors weigh against issuance of a preliminary
injunction.
Under Nebraska law, covenants not to compete must satisfy three general
requirements:
First, the restriction must be reasonable in the sense that it is not
injurious to the public. Second, the restriction must be reasonable in
2
Dataphase Sys., Inc. v. C L Sys., Inc., 640 F.2d 109 (8th Cir. 1981) (en banc).
-6-
the sense that it is no greater than reasonably necessary to protect the
employer in some legitimate business interest. Third, the restriction
must be reasonable in the sense that it is not unduly harsh and
oppressive on the party against whom it is asserted.
H & R Block Tax Servs., Inc. v. Circle A Enters., Inc., 693 N.W.2d 548, 553-54
(Neb. 2005). However, “[w]hether a noncompete clause is valid and enforceable
requires us to categorize the covenant as either an employment contract or the sale
of goodwill.” Unlimited Opportunity, Inc. v. Waadah, 861 N.W.2d 437, 442 (Neb.
2015). Under Nebraska law, noncompete provisions involving goodwill are looked
upon more favorably, with the Supreme Court of Nebraska explaining that
Nebraska courts are generally more willing to uphold promises to
refrain from competition made in the context of the sale of goodwill as
a business asset than those made in connection with contracts of
employment, reasoning that in the sale of a business, “[i]t is almost
intolerable that a person should be permitted to obtain money from
another upon solemn agreement not to compete for a reasonable period
within a restricted area, and then use the funds thus obtained to do the
very thing the contract prohibits.”
Id. at 443 (citations omitted). In contrast, in the context of an employment
agreement, Nebraska courts have explained that “[a]n employer has a legitimate
business interest in protection against a former employee’s competition by improper
and unfair means, but is not entitled to protection against ordinary competition from
a former employee.” Mertz v. Pharmacists Mut. Ins. Co., 625 N.W.2d 197, 204
(Neb. 2001). Still, even in the context of the sale of goodwill, “a covenant not to
compete ancillary to the sale of a business must be reasonable in both space and time
so that it will be no greater than necessary to achieve its legitimate purpose.”
Waadah, 861 N.W.2d at 443.
Defendants assert that, while JDT has a legitimate interest in protecting the
goodwill it purchased as part of the APA, the noncompete, which includes a
nationwide ban on doing business in an entire industry for a period of five years, is
greater than necessary to protect this interest. However, the district court made
-7-
several factual findings supporting its conclusion that the noncompete was not
greater than necessary to protect JDT’s interests. The district court noted that “[t]he
APA is clear that part of the sale was for goodwill,” which it defined as “Jim’s name
and reputation in the trucking industry.” The district court also found that “Jim’s
reputation does not solely exist in the flatbed trucking market,” because the
“reputation Jim built extended to the entire trucking industry.” The record evidence
supports the district court’s factual findings that the goodwill JDT purchased
includes Jim Daws’s nationwide name and reputation in the trucking industry.
Testimony at the hearing on the preliminary injunction described Jim Daws as “a
longstanding industry great,” “a great trucking industry guy,” and “really
well-known in . . . the trucking industry,” and at no point were discussions of Jim
Daws’s reputation and name recognition cabined to flatbed trucking. While the
record reflects that Daws has a history in the flatbed sector of the trucking industry,
it does not reflect that his name and reputation was similarly limited. The record
also contains evidence demonstrating that JDT itself was not limited to exclusively
operating in the specific subset of flatbed trucking. Testimony revealed JDT trucks
can be used to pull tankers, dry vans, or other commercial trailers, inherently
expanding the business beyond only the flatbed sector. Further, Jim Daws himself
testified that the drivers he trained in flatbed hauling could pull other forms of
commercial trailers, specifically acknowledging he had discussions about putting
drivers to work pulling refrigerated trailers. We discern no clear error in the district
court’s conclusion, based on this evidence, that Jim Daws enjoyed a valuable,
nationwide name and reputation in the trucking industry, and not one limited to only
flatbed trucking. See Oden v. Shane Smith Enters., Inc., 27 F.4th 631, 633 (8th Cir.
2022) (“Clear error exists where, viewing the record as a whole, we are left with the
definite and firm conviction that a mistake has been committed.” (citation omitted)).
We acknowledge that Nebraska courts closely scrutinize noncompete
provisions and on occasion have found geographic restrictions that cover the entire
United States or sweeping restrictions on contacting clients to be overbroad and
unenforceable. See, e.g., CAE Vanguard, Inc. v. Newman, 518 N.W.2d 652, 654,
656 (Neb. 1994) (affirming district court determination that non-compete was
-8-
unreasonable when it covered “the United States, the continent of North America,
or anywhere else on earth”); Mertz, 625 N.W.2d at 205 (holding noncompete
agreement was overly broad where it was not limited to clients with whom the
former employee actually did business or personally contacted). But those cases
present distinct factual scenarios involving former employees and employment
agreements, not the sale of a business and its goodwill, especially where the goodwill
constituted such a significant portion of the sale price—$4.5 million of a $12 million
total. Further, Nebraska courts have explained that the duration of a noncompete is
not subject to an arbitrary determination regarding whether it is reasonable; rather,
this is a fact-specific inquiry. Presto-X-Company v. Beller, 568 N.W.2d 235, 240
(Neb. 1997) (“Whether a covenant not to compete is reasonable with respect to its
duration and scope is dependent upon the facts of each particular case. . . . [W]e
must look to the record for evidence which establishes that a [particular] restraint
was a reasonable and necessary means of protecting the legitimate business
interest . . . .” (citation omitted)).
In sum, Nebraska courts have “recognized the legitimate need of one who
purchases a business to reasonably protect himself against competition from the
seller,” Presto-X, 568 N.W.2d at 238, and have upheld relatively broad noncompete
provisions, including, for example, preventing the seller of a car dealership from
selling new cars in that county for a period of 15 years, D.W. Trowbridge Ford, Inc.
v. Galyen, 262 N.W.2d 442, 445 (Neb. 1978). The particular facts of this case, as
found by the district court, demonstrate that Jim Daws had a wide influence and
reputation in the entire national trucking industry and that the sale of the business
was for a nationwide operation. For JDT to protect its business interests in that
reputation, a five-year noncompete provision preventing Jim Daws from engaging
in a competing business nationwide was not unreasonable. For the noncompete
provision to protect the goodwill JDT purchased in the APA, it must protect what
was sold. Here, the record demonstrates that the goodwill JDT purchased includes
Jim Daws’s valuable, nationwide reputation in the entire trucking industry.
Accordingly, the district court did not err in concluding that the noncompete
-9-
provision was not greater than necessary to protect JDT’s interest in protecting the
goodwill it purchased in the APA.
Defendants also assert that the noncompete provision is unduly harsh and
oppressive both in scope and duration, and that JDT failed to show that such
expansive restrictions are necessary to protect the goodwill it purchased. And
Defendants assert that the noncompete provision is injurious to the public because it
violates Nebraska public policy against unreasonable restraints on trade. But again,
these arguments ignore the district court’s factual findings—which we have
determined are not clearly erroneous—that the goodwill purchased in the APA was
Jim Daws’s name and reputation in the trucking industry and that this goodwill
extended beyond just the flatbed trucking industry to the entire trucking industry
nationwide. While the geographic scope and duration may be broad, the district
court did not err in concluding that they were not unreasonably so; the unique nature
of trucking as a nationwide industry, coupled with Jim Daws’s reputation in that
industry and roughly one-third of the purchase price being devoted to goodwill,
demonstrates that a lesser restriction would not achieve JDT’s legitimate purpose of
protecting the goodwill it purchased through the APA. The district court thus did
not err in concluding that the noncompete provision was enforceable and in further
concluding that JDT was likely to prevail on the merits of its breach of contract
claim. Because Defendants’ arguments about the remaining Dataphase factors are
premised on the same argument regarding the enforceability of the noncompete
provision, we similarly conclude that the district court did not err in its analysis of
these factors. Accordingly, the district court did not err in granting a preliminary
injunction in favor of JDT.
III.
Next, we address Defendants’ argument that the district court erroneously
ordered Defendants to remit $500,000 to JDT as a form of injunctive relief.
Defendants argue that the district court erred because JDT did not request this as a
form of relief in its motion, instead raising the request only in its closing statement
-10-
during the hearing on the motion for the preliminary injunction. Further, Defendants
assert that ordering them to remit these funds to JDT is an improper form of
injunctive relief because there is an adequate remedy at law in the form of a
conversion claim.
First, Defendants’ argument that JDT made no request for return of these
funds until the end of the preliminary hearing is belied by the record. In its brief in
support of its motion for a preliminary injunction, JDT detailed Jim Daws’s
interference with the ANB account, detailing how “Jim . . . used control over the
account to deprive JDT of its operating cash and to prevent JDT from paying the
expenses of its drivers.” Further, in its reply brief, JDT specifically requested that
the district court “prohibit Jim [from] further interfering with JDT’s use of its funds
in the ANB account to pay bills in the ordinary course, and to the extent necessary,
to complete the paperwork . . . to recognize Rick [as] having signature authority to
replace former employees who left with Jim.” These statements suffice to serve as
a request for the form of relief the district court granted with respect to the ANB
funds.
Second, as to the merits of Defendants’ argument, this Court has stated that,
when considering whether to issue a preliminary injunction, “the question is whether
the balance of equities so favors the movant that justice requires the court to
intervene to preserve the status quo until the merits are determined.” Dataphase, 640
F.2d at 113. The district court’s decision to order Defendants to return the nearly
$500,000 in the ANB account was a proper exercise of its discretion to determine
how best to preserve the status quo. The district court concluded that the funds in
the ANB account belonged to JDT, not Jim Daws, and that the funds were for the
purpose of supporting JDT’s operations. Indeed, the record evidence demonstrates
that the funds in the ANB account were for the day-to-day operation of JDT and that
after Jim Daws left JDT he interfered with JDT’s ability to access those funds for
business purposes, which impeded JDT’s ability to pay its bills. The district court’s
order to release the funds in the ANB account to JDT and its requirement that the
funds could be used only for JDT’s operational expenses, merely restored the status
quo of those funds being used for JDT’s day-to-day business and maintenance
-11-
expenses. This was not an abuse of discretion. See id. (“The equitable nature of the
[preliminary injunction] proceeding mandates that the court’s approach be flexible
enough to encompass the particular circumstances of each case.”).
IV.
Finally, we consider Defendants’ contention that the district court erred by not
setting an adequate bond. Defendants assert that the district court’s allegedly
erroneous decision to order them to release the roughly $500,000 from the ANB
bank account to JDT was compounded by imposing an inadequate bond. According
to Defendants, the district court set the bond amount based on the potential lost
revenue to a non-party, rather than assuring the return of the ANB bank account
funds should the injunction be reversed. Pursuant to Rule 65(c) of the Federal Rules
of Civil Procedure, a district court “may issue a preliminary injunction or a
temporary restraining order only if the movant gives security in an amount that the
court considers proper to pay the costs and damages sustained by any party found to
have been wrongfully enjoined or restrained.” However, we have explained that
“the ‘amount of the bond rests within the sound discretion of the trial court and will
not be disturbed on appeal in the absence of an abuse of that discretion.’”
Richland/Wilkin Joint Powers Auth. v. U.S. Army Corps of Eng’rs, 826 F.3d 1030,
1043 (8th Cir. 2016) (citation omitted).
JDT asserts that Defendants did not argue before the district court that it
should have ordered security with respect to the ANB funds so they have waived
that argument. Even assuming without deciding that Defendants did not waive this
argument, they cannot prevail. The district court exercised its broad discretion in
setting the amount of bond based on potential lost profits to another Jim Daws
trucking business—which it identified as the potential damages Defendants could
incur if the injunction were improperly issued—and in not including the ANB funds
in this amount. As the district court noted, the ANB funds belonged to JDT, but
were being controlled by Jim Daws, and there is no dispute that these funds were for
the JDT’s day-to-day operations. Because the record demonstrated that the funds
-12-
belonged to JDT, the district court was entitled to conclude that these funds would
not be part of any damages should it be found that Defendants have been wrongly
enjoined and thus need not be reflected by the bond amount. We therefore discern
no abuse of discretion in the district court’s decision to exclude the amount of funds
in the ANB bank account in setting the bond amount.
V.
For the foregoing reasons, we affirm the judgment of the district court.
GRASZ, Circuit Judge, dissenting.
I would vacate the district court’s preliminary injunction for three reasons.
First, as read by the majority, the noncompete is unenforceable under Nebraska law.
Second, the majority reads the noncompete more broadly than its terms allow. And
third, even read correctly, the noncompete is unenforceable because it is still greater
than reasonably necessary to protect JDT’s legitimate interests.
Nebraska caselaw is replete with decisions saying courts “do not look with
favor upon restraints against competition,” including noncompetes. E.g., Griffeth v.
Sawyer Clothing, Inc., 276 N.W.2d 652, 655 (Neb. 1979). “At common law[,] all
contracts in restraint of trade were against public policy and void.” Secs. Acceptance
Corp. v. Brown, 106 N.W.2d 456, 462 (Neb. 1960). The sun may have set on free
trade’s heyday, see Gaver v. Schneider’s O.K. Tire Co., 856 N.W.2d 121, 127 (Neb.
2014) (“[P]artial restraints of trade[] are enforceable”), but noncompetes are still
“‘not favorites of the law’” and are only enforceable if “reasonable.” Id. (quoting
Brown, 106 N.W.2d at 462). “Regardless of the context,” this means a noncompete
“must be reasonable in the sense that it is” (1) “not injurious to the public”; (2) “no
greater than reasonably necessary to protect . . . some legitimate business interest”;
and (3) “not unduly harsh and oppressive on the party against whom it is asserted.”
Unlimited Opportunity, Inc. v. Waadah, 861 N.W.2d 437, 443 (Neb. 2015).
-13-
True, “Nebraska courts are generally more willing to uphold [noncompetes]
made in the context of the sale of goodwill as a business asset than those made in
connection with contracts of employment . . . .” Id. But make no mistake, the
requirement that a noncompete must be “no greater than necessary to achieve its
legitimate purpose” still applies in this context. Id. (emphasis added); accord
Chambers-Dobson, Inc. v. Squier, 472 N.W.2d 391, 397 (Neb. 1991) (“The restraint
of trade that is permissible . . . is no greater than is necessary to attain the desired
purpose — the purpose of making good will a transferable asset.”). And unlike most
states, Nebraska will not judicially reform or “blue pencil” overbroad noncompetes.
See CAE Vanguard, Inc. v. Newman, 518 N.W.2d 652, 655 (Neb. 1994) (noting the
Nebraska Supreme Court “has never allowed reformation of a [noncompete]”
(emphasis added)).
The Nebraska Supreme Court has explained that although this is the “minority
view,” it is “the most reasonable” and “most in harmony with existing precedent,”
because “courts may not rewrite a contract for parties.” Id. at 655–56. When it has
been asked to rethink this position, the Nebraska Supreme Court has
flatly “decline[d the] invitation to reconsider [its] rejection of the blue pencil rule.”
Waadah, 861 N.W.2d at 442. This means our court must “strictly construe[]” the
noncompete and resolve any doubt “against the latitudinarian construction thereof.”
Griffeth, 276 N.W.2d at 655. And if the noncompete is greater than necessary to
protect JDT’s legitimate interests when so construed, we must strike it down without
flinching, just like the Nebraska Supreme Court has done each time it has
encountered a noncompete that failed to meet this daunting standard. See, e.g.,
Waadah, 861 N.W.2d at 444; Presto-X-Company v. Beller, 568 N.W.2d 235, 241
(Neb. 1997).
The majority’s conclusion that the noncompete is enforceable and prohibits
Defendants from engaging “in the entire national trucking industry,” ante p. 9, is
wrong twice over. For one, if the noncompete extends to the entire trucking industry,
it is void because Nebraska only enforces noncompetes when they are limited to the
seller’s particular field. See D.W. Trowbridge Ford, Inc. v. Galyen, 262 N.W.2d 442,
-14-
445 (Neb. 1978) (holding the noncompete a Ford dealership’s seller signed
preventing him from selling new cars was enforceable because it was aimed at
“protect[ing] the purchaser against the competition . . . in the new car field . . . .”
(emphasis added)).
For example, in Antrim v. Pittman, Patrick Antrim signed a noncompete when
he sold his heating and air conditioning business to Clyde Pittman. 203 N.W.2d 510,
511 (Neb. 1973). Before it expired, Antrim opened two businesses selling water
softeners, and Pittman sued, alleging Antrim was breaching the noncompete. Id.
The court acknowledged that selling heating and air conditioning equipment and
water softeners were similar enough to come within the noncompete’s terms,
apparently because both involved selling household goods. Id. But it held that the
noncompete was void and unenforceable because “[i]n the sale of a business the
restraining promise is illegal as to lines of trade other than those sold by the party
whom the covenant restrains.” Id. at 512; accord Squier, 472 N.W.2d at 398 (“[A]
reasonable restrictive covenant against the seller’s competition in the type of
business sold may be enforced.”); see also Bar’s Prods. Inc. v. Bars Prods. Int’l Inc.,
662 F. App’x 400, 410 (6th Cir. 2016) (“[A] restraint in the business-sale context
may be as broad as the business covered by the agreement . . . .” (cleaned up)); Nalco
Chem. Co. v. Hydro Techs., Inc., 984 F.2d 801, 805 (7th Cir. 1993) (“[T]he
prohibition against working in the entire industry was overbroad.”).
It is undisputed that JDT is a specialized flatbed carrier. This was admitted in
sworn testimony and JDT does not argue otherwise on appeal. And the APA itself
could not be any clearer. Defendants only “own[ed] and operate[d] a trucking
company specializing in hauling over the road flatbed freight . . . .” If the
noncompete extends to the entire trucking industry, as the majority concludes, rather
than flatbedding — the only field Defendants engaged in — it is void and
unenforceable.
The majority’s conclusion that JDT has a legitimate business interest in
excluding Defendants from the entire trucking industry is a real headscratcher. See
-15-
Mertz v. Pharmacists Mut. Ins. Co., 625 N.W.2d 197, 203–04 (Neb. 2001) (noting
noncompetes that “are broader than reasonably necessary to protect legitimate
business interests . . . are against public policy and void” (emphasis added)). To give
just a few examples, JDT does not dispute, and there is no evidence in the record,
that either Defendants or JDT have ever hauled refrigerated trailers or “reefers,”
moving trucks, livestock trailers or “bull racks,” tankers, or dry vans. Rather,
flatbedding is the only kind of trucking Defendants and JDT have ever done. On the
majority’s reading, the noncompete prohibits Defendants from engaging in all these
different types of trucking just the same. And this does not square with Nebraska
law. Noncompetes are only “available to prevent unfair competition,” not to shield
someone from “ordinary competition,” and most definitely not to prevent someone
from engaging in a business that would not compete at all. E.g., Squier, 472 N.W.2d
at 399 (emphasis added).
To reach the opposite result, the majority hinges its entire decision on the
district court’s factual finding that Jim Daws’s reputation “extend[s] to the entire
trucking industry.” Ante pp. 7–10. It concludes this finding is not clearly erroneous
by positing that JDT trucks “can be used to pull tankers, dry vans, or other
commercial trailers,” (emphasis added) if they were to be connected to such
equipment instead of a flatbed. True enough. And if “ifs and buts were candy and
nuts . . . .” 3 Fantasy aside, the undisputed evidence is that JDT is a specialty flatbed
trucking company. Ante pp. 7–10. Even assuming Jim Daws’s reputation extended
far beyond his actual business, it is of no moment. Nebraska caselaw is clear;
noncompetes are only enforceable within the seller’s field of business, not in every
field in which the seller is known. And this aside, the district court’s finding is
clearly erroneous. A factual finding is clearly erroneous “if it is unsupported by
substantial record evidence,” and this finding garners no support in the record. E.g.,
Staton v. Maries Cnty., 868 F.2d 996, 998 (8th Cir. 1989). As noted above, there is
3
The English tradition has long recognized mere “ifs and buts” are limited to
potential scenarios, not actual ones. See Sir Thomas More, The History of King
Richard III 48 (Richard S. Sylvester ed., 1963) (originating the phrase “thou seruest
me I wene w[ith] iffes & with andes,” which evolved into the American idiom).
-16-
no evidence that Jim Daws ever engaged in anything but flatbedding or that his
reputation extends beyond this subset of the trucking industry. And even ignoring
this too, the finding says nothing about where Daws is known. The only evidence I
see in the record on this point is that around 70% of his business was “located within
300 miles of Lincoln, Nebraska,” and this does not support the idea that Daws was
known coast-to-coast.
Second, the noncompete’s terms themselves do not prohibit Defendants from
engaging in the entire nationwide trucking industry. As the majority notes, the
noncompete purports to prevent Defendants from,
either directly or indirectly, carry[ing] on or engag[ing] in, either as an
owner, part owner, manager, operator, employee, agent, or other
participant, the business of trucking in the continental United States of
America, for a period of no less than five (5) years from the date of this
Agreement, so long as [JDT] . . . carries on a like business in such
area.
The noncompete’s final clause limits its scope to businesses like JDT’s in the area
JDT operates in. That is, businesses that might actually compete with JDT.
There is no evidence, as noted above, that JDT engages in anything other than
flatbedding, and the evidence regarding where it operates is scant at best. Nebraska
law does not permit us to read noncompetes liberally to impose “just” results where
equity favors a complaining business. Instead, we must strictly construe the
noncompete, see Griffeth, 276 N.W.2d at 655, and “either enforce [it] as written or
not enforce it at all.” Waadah, 861 N.W.2d at 441 (cleaned up). So when the district
court enjoined Defendants from participating in the entire nationwide trucking
industry — without the evidence it needed to determine what the noncompete
actually covers — it abused its discretion. See Quiles v. Union Pac. R.R., 4 F.4th
598, 606 (8th Cir. 2021) (“[A] district court abuses its discretion when there is a lack
of factual support for its decision . . . .” (alteration in original) (quoting Martin v.
Ark. Blue Cross & Blue Shield, 299 F.3d 966, 969 (8th Cir. 2002))). And the abuse
is particularly glaring because any doubt regarding the noncompete’s scope was
-17-
supposed to be resolved “against the latitudinarian construction thereof,” not in favor
of the broadest reading possible. Griffeth, 276 N.W.2d at 655; see also Iowa Migrant
Movement for Just. v. Bird, 157 F.4th 904, 913 (8th Cir. 2025) (“A district court ‘by
definition abuses its discretion when it makes an error of law.’” (quoting Koon v.
United States, 518 U.S. 81, 100 (1996))).
If this evidentiary mismatch between the noncompete’s and the injunction’s
terms was the only problem, we could remand and direct the district court to
reconsider its injunction’s scope. See, e.g., Harper v. Gen. Grocers Co., 590 F.2d
713, 717 (8th Cir. 1979). But it isn’t. The noncompete forbids Defendants from
engaging in trucking, “eith