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What are the key differences between Price v. Gurney et al. and other similar legal cases involving the use of restrictive covenants in employment contracts

Jurisdictional issues: In Price v. Gurney, the Supreme Court held that the bankruptcy court did not have jurisdiction to entertain a Chapter X petition filed on behalf of a corporation organized under state law by its stockholders. In contrast, other cases involving restrictive covenants in employment contracts typically involve disputes between private parties and do not raise jurisdictional issues.

Nature of the dispute: Price v. Gurney involved a dispute between a corporation and its stockholders, whereas other cases involving restrictive covenants in employment contracts typically involve disputes between employers and employees or between competitors.

Type of restrictive covenant: Price v. Gurney involved a provision in the corporation's articles of incorporation that prohibited the issuance of additional stock without the consent of the holders of a majority of the outstanding shares. Other cases involving restrictive covenants in employment contracts typically involve non-compete or non-solicitation clauses that restrict an employee's ability to compete with their former employer or solicit their former colleagues.

Legal context: Price v. Gurney was decided in the context of Chapter X of the Bankruptcy Act, which provided for the reorganization of corporations. Other cases involving restrictive covenants in employment contracts are typically decided under state law, with the exception of cases involving the enforcement of non-compete agreements in the context of mergers and acquisitions, which may be governed by federal law.

Remedy sought: In Price v. Gurney, the stockholders sought to enjoin the corporation from issuing additional stock in violation of the restrictive covenant. In contrast, in other cases involving restrictive covenants in employment contracts, the employer may seek an injunction to enforce the non-compete or non-solicitation clause or the employee may seek a declaration that the restrictive covenant is unenforceable.

Standard of review: The Supreme Court in Price v. Gurney applied a de novo standard of review, as it was a case involving a question of jurisdiction. In contrast, other cases involving restrictive covenants in employment contracts are typically reviewed for abuse of discretion or under a deferential standard of review.

Policy considerations: Price v. Gurney involved a tension between the interests of the corporation and its stockholders, whereas other cases involving restrictive covenants in employment contracts typically involve a tension between the interests of the employer and the employee. The court's decision in Price v. Gurney was influenced by the public policy of protecting the interests of the corporation and its creditors, whereas in other cases involving restrictive covenants in employment contracts, the court's decision may be influenced by the public policy of protecting the interests of the employee and promoting competition.

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