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Covenants Not to Compete
Boyd W. Shepherd, D.D.S., J.D.

Covenant = Promise = Contract
This is usually a restrictive agreement that states the length of time and/or the area (square miles or radius) in which the associate may not practice dentistry should the associateship terminate.

In negotiating the terms of the covenant, the associate should ask himself or herself this question: "Is this opportunity so great that I would contract away my now-existing right to open my own practice next door?"

The Host/Employer, on the other hand, is concerned about the potential loss of patients to the new associate who may leave after six months and yet still enjoy the benefit of having access to the patient database of the Host dentist, not to mention those who will follow the assosciate for whatever reason.

Again, the key is enforceability. The issue will revolve around reasonableness of the covenant versus the potential interest of the associate in the practice in question. Always assume that the covenant is enforceable, and negotiate its terms likewise.

Boyd W. Shepherd is licensed to practice law and dentistry in the state of Texas, and is a member of the GHDS, TDA, and ADA.