Drug test, covenant not to compete.

Coastal Unilube, Inc. appeals a lower court's ruling on suit a between the company and one of its former employees. One week after joining the company's sales staff, Robert E. Smith III was asked to sign a covenant not to compete with his employer for a year after leaving the company. Smith also submitted to a drug test at the time he was hired. About 13 months later, Smith took a position with one of Unilube's competitors. The company contends Smith violated the covenant.

Although a trial court initially granted Unilube a temporary injunction against Smith based on the covenant not to compete, it later withdrew the injunction because the covenant had not been presented to Smith before he began working for the company. The covenant was deemed void due to failure of consideration.

Smith loses. The court of appeals reversed the order to dissolve the injunction because Smith continued to work for and accept compensation from Unilube for more than a year after signing the covenant.