Saturday, 16 January 2010

What do I do if My Non-Compete Agreement Has Been Broken?

About once a month I get a call from an attorney or a client asking me to get my scorched earth battle gear on because they want to go after an employee/former employee who is competing against them in business after having signed a non-compete agreement.

Sometimes, their stories are compelling and the facts are clear that action must be taken. Sometimes, however, the battle is one of principle that, ultimately, will cost the business owner more in heartache, time away from their own business, and legal warfare fees than the fight is worth.

Whenever the situation is such that the fight is one of pride and principle rather than of solid legal merit, I point my client or colleague to Jay Shepherd’s (Shepherd Law Group) excellent blog post “Eight Ways to Lose a Non-Compete Case.”

His bottom line advice: If you’re truly wearing the white hat (i.e., are the “good guy”), and your agreement is narrowly drafted, and your secrets or customer relationships are indeed in imminent peril, then you’ve got a fighting chance of winning. Otherwise, wave goodbye to the former employee and get back to work.


The Rest by  Mary Ann Hisel    @ Texas HR Law

The 8 ways to lose a noncompete are:
  1. Put your faith in the language of the noncompete agreement.
  2. Try to enforce against any old employee.
  3. Make sure the noncompete is broadly drafted.
  4. Focus [only]on geography, duration, and scope.
  5. Wait a while to file.
  6. Ask for the injunction before you've developed enough evidence.
  7. Don't worry about which state to file in.
  8. Focus on the law instead of on the story.
Details.... from Jay Shepheard

Lee Royal


No comments:

Post a Comment