Consumer Law, Warranties Accepting Full time job at my Client company

[vijaykrishna200]

Hi Every one,

First of all i would like to thank you all for your valuable advices. Currently i am in a ambiguous situation as below.

I am an employee of Company A and joined as a IT Contractor at my client company C as follows.

Company A -> middle vendor -> Prime vendor -> Client (Company C)

After 1 year, i resigned from Company A and joined Company B and was working for the same client (Company C).

Company B -> Prime vendor -> Client (Company C)

Now the problem is I have signed a non-compete agreement when i was with Company A. I am paying 20,000 US Dollars to remove my non-compete agreement. Now my primary concern is

(i) my Client Company C has offered me a full time job.

(ii) Even though i cleared my non-compete agreement with Company A, is there any chance for my ex-employer Company A to sue on my Client Company C.

(iii) As there is no direct contract between my ex-employer Company A and client Company C, if my ex-employer Company A goes to court by filing a law suit against my client Company C ..what are the chances/possibilities for my client Company C to defend and win the case in the court?

(iv) If i sign a non-disclosure agreement with my client company (means my client company offered me full time job based on my skills and experience) can they prevent/defend if my ex-employer Company A tries to threaten a law suit in the Court.


Waiting for your valuable advice/suggestions. Thanks in advance.

 

[army judge]

I'm surprised you gave a penny.

No, A has no claim against C or you.

Besides, non-competes aren't perpetutal.

You've got little to worry or fret over.

Go, earn money so you can pay taxes and continue to fund my retirement takings.

 

[vijaykrishna200]

Hi,

Thanks for your valuable advice. Do you mean to say i have nothing to worry about this non-compete agreement. And do you mean to say there will no problem for my client company from being sued by my ex-employer A.

Please advice.

 

[Michael Wechsler]

1 - Nobody is guaranteeing you anything here without seeing all of your agreements. That should be a given although I read your response, like many, in the hope of hearing an absolute "no, 100% no problem!" We don't know for sure but odds may be likely that our guess is correct.

2 - Army Judge is telling you that, in all likelihood, if you have removed the non-compete once it won't be a problem again - especially if it's with a client. I agree with him on this one and can't imagine how going from B to C would ever present a problem with A, except if there is something specific written into your agreement with company A.

That said, the absence of a non-compete doesn't mean there isn't an agreement in place that makes moving from B to the client a seamless transition. There might be complications either via B or the middleman due to a "non-solicitation" clause in an agreement between them. This is in place because the consulting company doesn't want to simply lose employees to a client without some type of remuneration for the loss of the employee and the revenue as a result of the introduction made by the consulting company.

Good luck - it seems very likely you'll be OK and, if concerned, get a legal review.

 

[rajivkarora]

When I joined client. I signed non-competent agreement with company A (Prime vendor)
Me - >Employer X-> Prime vendor (Company A) -> Client (TX State)
Now company A lost his license and I don't have any contract with Prime vendor (Company B)
Me -> Employer X-> Company A - > Prime vendor (Company B) -> Client (TX State)

Now I want to change Prime vendor
Me -> Employer X-> Prime vendor (Company C) -> Client (TX State)

Consultant acknowledges that the identities of Customers (State TX) are the property of Company A. In consideration of Company A's disclosure to Consultant of names and opportunities with Customers, Consultant agrees that during the term of any assignment and for a period of one year thereafter, the Consultant shall not accept any full time or part time employment with, or otherwise agree to provide services, whether directly or indirectly through another Vendor or third party, to the Customer to which Consultant has been assigned by Company A without the written approval from Company A.