Consumer Law, Warranties Non Compete Agreement

[ComptechFF80]

This is a rather long story Im sorry but I want to make it clear.

In 1999 I went to work for a computer/internet company as a technician for my college internship. I worked there for 6 months practicing everything I had learned in school and learning stuff along the way. When my internship was over I was told either I sign a non compete aggrement to work there or I had to go. Well I looked over the contract for a few days and it had a non compete clause stating I couldnt work in the area for 2 years after I left. After telling him I wouldnt sign it because my goal was to start my own business in my hometown someday after I quit he said he would have the contract changed that it was no problem. The part that changed was that I could do/build a business as long as I didnt solicit his customers. I had the contract looked at by a couple lawyers and they said I should be fine. After a year and a half of working for him I left to start my own business and shortly there after he started a law suit against me for breach of contract. I went and got what I thought was a good lawyer and he said I wouldnt have any problems. Well after about a year or so they finally got an injuction against me to stop working there, even tho I had already quit and sold my interest in the company. During the time that I had left and before they started suit, they(the plantif) had sold thier company to another company. Before the judge my lawyer states this and that the contracts were sold as well and that they were not assigned back to the plantif. The plantif then states that they had verbally assigned the computer portion back to them and only sold the internet portion. Thier lawyer asks if they can have it written now after the fact and submit it. The judge replies are you asking me for legal advice? So they do and submit it after the fact and already in the process, so now the case must go on. The judge clearly seems to favor the plantif because of some newspaper add where my partner in the business says something like we will be the best place around for computer repair and internet. After seeing that his actions seem to completely favor the plantif. About 2 years pass now still in court and my lawyer claims a conflict of interest and abandoned me. So i get another lawyer. He continues motions that were set forth with the previous lawyer for discovery for contracts with the company the plantif had sold out to, proof of solicotation and so forth but he cant seem to get any of this. My new lawyer replies that my old lawyer kinda used up all the freebees with the judge?? He then convinces me to file bankruptcy and that whatever ruling came out of it if I lost could be discharged so I do so. Now they are trying to have that thrown out of my discharge(even tho the trial hasnt taken place really) saying that it was purposeful or something kinda like murder? Im really at my wits end in all this. Im not sure if the lawyers around here are incompetant or just taking my money and leaving me out to dry. At no time did I solicite any of thier customers or take any trade secrets from them and they just arent producing anything in discovery or the judge isnt making them. Yet the judge because of a newpaper article made during the grand opening of the store sees us guilty or acts like it in this proceeding. I dont know what to do should i get another lawyer? I feel like ive been mislead all this time and havent really done anything wrong. Thier lawyer is looking for a 500k settlement for damages I may have done to them and I have nothing. I live in Ky and know laws are different everywhere but it always seemed like this was a simple matter of proving that I solicited thier customers or stole trade secrets neither of which ive done. Any advice someone would give is appreaciated even if the advice is get ANOTHER lawyer. Btw we are doing on our 3rd year in court

Thanks in Advance

Jeff

 

[Michael Wechsler]

I don't know the specifics of your situation. Non-compete agreements must be reasonable in scope and length. Depending upon the level of the sensitivity of the data will determine the length the contract should be.

You did start a competing business immediately after leaving the company and in the same area. On what basis was the case allowed to proceed if you were limited only to non-solicitation of your former employee's clients? It should have been dismissed unless the ex-employer could provide examples of solicitation or actual business with them. We need more information to decide whether the plainiff's case is not meritorious or whether your attorneys are incompetent.

 

[ComptechFF80]

Ill try and go a little deeper. I had made a friend when I worked for my ex employer and when I told her I was wanting to start my own business her husband approached me wanting to foot half the bill and become partners. I asked her if she had a contract with them still in effect and she said yes but would take it to a lawyer to make sure everything was ok. Her contract was different than mine in the fact that hers was complete non compete, did not have my solicitation clause in it and I was worried. She took it to 2 different lawyers and they said it was ok because the contract was null and void since they sold the business. Like the contract didnt exsist anymore. So we proceed with making our business. Even knowing that the contracts were supposed to be void we didnt solicit thier customers. Only put out general ads in the newspaper for computer sales service and internet access. Our ex employer then starts suit against her and leaves me out of it really and she goes before the judge. The judge reads over her contract and is shown a newspaper add of our grand opening where her husband says something to the effect that we will be the best computer sales and service shop in town. The judge then claims they do have a case against her. Shortly after they start suit against me and the judge I think puts me under her same umbrella without really reading my contract with the solicitation clause. Our lawyer motions to dismiss on the fact that the contract is now null and void because they sold thier business and the contract states if that happens then it is infact no longer a binding agreement between us. Our ex-employer's lawyer states that they had a verbal agreement with the company that they sold out to, to reassign our contracts back to them. The judge kinda laughs about it and states that it should be in writing and allows them to go back to the company they sold out to and get it assigned after we are already being sued. Now since they do have a case against her being as the judge allowed the company who bought them out to assign the contracts back to my ex employer she may very well be found guilty because her contract was non compete period and did not have my solicitation clause. Mine on the other hand did have that clause and at no time did I ever solicit thier customers directly or indirectly other than like i said the business did put out newspaper adds for computer sales and service in general. I honestly dont think the judge looked over my contract and realized that mine was a case of solicitation not of competition as hers is. At no time have they shown proof of solicitation and the day we were to be in court and our lawyer dismissed it until they got it reassigned I had 7 of my ex employers biggest customers there to get on the stand and testify that I didnt solicit them that they came to us because my ex employers service was terrible. It was on thier own free will never did I approach them. I hope this cleared up some of what you asked if you need to know anything else let me know.

 

[Michael Wechsler]

If the company has no case against you as you say, you should counterclaim against them for malicious prosecution for not having any cause of action against you. It should be contained in the brief your lawyer writes. It's not necessarily the best position to have one lawyer representing the interests of both you and your partner.

I don't have a copy of your agreement so it's difficult to state whether or not the judge really is asleep at the wheel. Suffice it to say that if it is as you say, then there is no non-compete problem for you. With regard to your partner, it is possible that she has a problem as the company can always get the agreements assigned IF they are assignable. You are saying they are not. I don't know as I am not able to see the language.

 

[Rdhibb]

break contract

What are the consequences of breaking a no compete contract.
The companies contract ends next year and I want to work for them but have a 1 year no compete. Does this still apply since the companies contract ends. And if I decide to keep working here what can happen? Is my contract still good even though the company ends theres and decides to go on their own?

 

[Michael Wechsler]

What are the consequences of breaking a no compete contract.
The companies contract ends next year and I want to work for them but have a 1 year no compete. Does this still apply since the companies contract ends. And if I decide to keep working here what can happen? Is my contract still good even though the company ends theres and decides to go on their own?

You can be sued for damages and potentially you may have issues with your new employer as well. It's something to be taken with some thought but, for the most part, many will move on and challenge the old company to a lawsuit as these contracts are to be construed in favor of the employee since they need the protection. Just don't do anything stupid and clearly in violation of a reasonable non-compete agreement and clause. For the most part they are not enforceable longer than a year and in limited geographic range, depending upon length of employment and level of the employee in the organization and exposure to sensitive and confidential information.