Section 6 Accountants

• Library: Employer-Employee Law 2008

Restrictive employment covenants in public accountants’ employment contracts with accounting firms are not void because of public policy. Schott v. Beussink, 950 S.W.2d 621, 628 (Mo. App. E.D. 1997).

4. (§17.7) Conflict of Laws and Forum Selection Clauses

Missouri courts will enforce a choice-of-law provision in a noncompetition agreement as long as the application of the chosen law would not violate a fundamental public policy of Missouri. Consol. Fin. Invs., Inc. v. Manion, 948 S.W.2d 222, 224 (Mo. App. E.D. 1997). Missouri courts permit the choice of law to apply only to the substantive law of the case, not to the procedural questions. Hemar Ins. Corp. of Am. v. Ryerson, 108 S.W.3d 90, 95 (Mo. App. E.D. 2003).

In the absence of a choice-of-law provision, Missouri follows the Restatement (Second) of Conflict of Laws §§ 6 and 188 (1971), generally seeking the state with the “most significant contact.” Nat’l Starch & Chem. Corp. v. Newman, 577 S.W.2d 99, 104 (Mo. App. W.D. 1978); Ashland Oil, Inc. v. Tucker, 768 S.W.2d 595, 600 (Mo. App. E.D. 1989). The Western and Eastern Districts of the Missouri Court of Appeals have held that when a choice-of-law provision renders a contract void, that choice-of-law provision will not be applied because it is presumed that the parties entered into a contract intending to create a valid contract. State ex rel. St. Joseph Light & Power Co. v....