Consumer Law, Warranties I need help by this weekend/please asap

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My husband and I sold a business of sales and service of outdoor power equipment (Lawntractor, gokarts, chainsaws and such) in March of 03. We signed a 5 year non compete not to go into this line of work that may compete in anyway with the new owner. In August of 04 after hardship forced us to take a job that consisted of my husband working in a "distributorship" of some of the same items that this "dealer" sells we have been slapped with a lawsuit. Please keep in mind that the company that my husband works for sells the products to the man that purchased our business. The business that my husband works for also sells over the counter at a higher price but so the man that we sold to. These are two different levels of business. My husband's company sells to 4 different states "dealers" only. And also they sell over the counter to walk in customer in our general area. The dealer that we sold to buys from my husbands company and also sells over the counter to the general area. This is our sole income and we have just been notified that a "injunction" has been filed and the hearing is next Tuesday and they want my husbands to have to give up his job immediately until this is settled. What is the best way to handle this in order for my husband to keep his job. We do have a lawyer working for us through my husbands employer. The owner of my husbands company has footed the bill so far and its hitting around a few thousand dollars but he tells us he is taking care of the money part because my husband has the expertise he needs to manage this particular location. The company my husband works for is huge in plumbing, electrical, hvac, in several locations. They also control 1 location of distributing outdoor power equipment parts to dealers far and near covering their territory and since my husband sold his business and the previous manage had passed on my husband was offered this position as manager as a last resort. It was good money and we had to take it. We have children that we have to take care of. So what do we do. At our attorneys advice we did try to talk with the new owner about working something out but since he owes us 45,000 for the "business part" (he paid in full for the inventory and property) he says he is entitle to our money and my husband will be forced to quit and he in no way was going to settle anything except in a courtroom. Please help

 

[Michael Wechsler]

At this point I don't think anyone here can be of further assistance as your husband has representation that is in a better position to make recommendations, especially being privy to all the details.

A five year non-compete is a long time but a year or two is not. Thus the non-compete might well be enforceable. Whether or not your husband's new company sells the items at a higher price, it does not matter since they would still compete with the business you sold. Some people may buy the items at a higher price not being aware of the other company or simply preferring to pay a premium to deal with a large reputable company. The heart of the issue is whether the company actually competes. If the employer is a distributor and the business you sold is a retailer, it is possible that there is no competition at all. The lines of business do not cross.

What is also important is to look at the non-compete. I'm guessing this is also covered. The injunction hearing will likely say a lot. If it goes your way (and the factfinder is supposed to view the evidence more favorably toward the rights of individuals to be employed and away from unreasonable restrictions) then you are in good shape. If the injunction is granted -- which it may be since you seem to state that the company is competitive in some fashion, then I'm not sure what anyone can do except take another job in a different line of business. That is part of the exchange when you sell your business and take another -- that a premium is paid for the expert to find work other than in that industry. Good luck to you and your husband and I hope things turn out well for you.

My husband and I sold a business of sales and service of outdoor power equipment (Lawntractor, gokarts, chainsaws and such) in March of 03. We signed a 5 year non compete not to go into this line of work that may compete in anyway with the new owner. In August of 04 after hardship forced us to take a job that consisted of my husband working in a "distributorship" of some of the same items that this "dealer" sells we have been slapped with a lawsuit. Please keep in mind that the company that my husband works for sells the products to the man that purchased our business. The business that my husband works for also sells over the counter at a higher price but so the man that we sold to. These are two different levels of business. My husband's company sells to 4 different states "dealers" only. And also they sell over the counter to walk in customer in our general area. The dealer that we sold to buys from my husbands company and also sells over the counter to the general area. This is our sole income and we have just been notified that a "injunction" has been filed and the hearing is next Tuesday and they want my husbands to have to give up his job immediately until this is settled. What is the best way to handle this in order for my husband to keep his job. We do have a lawyer working for us through my husbands employer. The owner of my husbands company has footed the bill so far and its hitting around a few thousand dollars but he tells us he is taking care of the money part because my husband has the expertise he needs to manage this particular location. The company my husband works for is huge in plumbing, electrical, hvac, in several locations. They also control 1 location of distributing outdoor power equipment parts to dealers far and near covering their territory and since my husband sold his business and the previous manage had passed on my husband was offered this position as manager as a last resort. It was good money and we had to take it. We have children that we have to take care of. So what do we do. At our attorneys advice we did try to talk with the new owner about working something out but since he owes us 45,000 for the "business part" (he paid in full for the inventory and property) he says he is entitle to our money and my husband will be forced to quit and he in no way was going to settle anything except in a courtroom. Please help