Legal Question in Business Law in California

Re: non compete

Sounds like you've got a great case for misappropriation of trade secrets and unfair competition.

You have several issues to consider. First, can you afford to litigate this? You must ask yourself this at the beginning of a lawsuit otherwise you may find yourself having spent a few tens of thousands of dollars and realize that you're going to have to spend more to get anywhere.

Second, you want to get your evidence together. You want to get whatever evidence you have that the former employee used your confidential information such as customer lists. Do you have evidence that he was contacting your customers and that any of your former customers went over to his new business?

As far as what you can now do, there are several things. You can sue the former employee and his business. You can seek an injunction to prevent his use of your confidential/trade secret information during the pendancy of the lawsuit.

Depending on how much money you estimate you have lost as a result of the former employee it may be worthwhile to file suit.

I would be happy to consult with you regarding this matter. We do represent clients in Orange County.

J. Caleb Donner

DONNER & DONNER

LEGAL WARRIORS�

910 Hampshire Road, Suite R

Westlake Village, CA 91361

Tel: 805-494-6557

Fax: 805-494-0990

email: [email protected]

website: www.legalwarriors.com

Re: non compete

You have waited quite a while to do anything, but I don't think it is fatal. At least now you know your damages. You can file a suit based upon breach of contract and unfair business practices. Since the ex-employees seem to be doing well financially, you have some likelihood of recovering damages. You may also seek a restraining order, but the court may conclude you waiting too long to bring that request. Contact me if interested in discussing the facts and costs of doing this.

Re: non compete

Maybe. Non-competes are generally unenforceable, but in some respects they can be enforced depending on the actual contract language. You may contact me and I suggest you move quickly lest your stature of limitations run out.

Re: non compete

You bet you can but you must have a a good business litigation attorney to represent you. There are numbers of claims/causes of action that you have including unfair competition, theft of proprietary business information and numerous other claims. But you shouldn't believe the long as you have not specified specific dates/Times and there are strict statutes of limitations . You must act immediately and hire an experienced attorney to help you in each phase of this situation.I have been practicing law in the San Francisco Bay area for approximately 35 years and expert in the area in the category in which your question is placed. I feel I can help you in this matter and if you wish to consult with me please contact me at 925-945- 6000.

Re: non compete

Your "non-compete" contract may be your Achilles heel. Over-broad non-compete contracts are void, not only the provisions that make them overbroad, but also everything else.

How could it be over-broad? The usual problem is a provision that prevents, or tries to prevent, an employee from engaging in a particular trade or occupation. This is illegal in California. If John Doe sells widgets for X, X cannot prevent Doe from jumping ship and selling widgets for Y, or from opening Doe Widget Sales, his own company.

X can, however, expect Doe to refrain from using X's trade secrets, and trade secrets include information about widget customers, prospective widget customers, and their special needs and preferences, to the extent these lists and information about needs, etc. are proprietary to X and not common knowledge in the widget industry.

The statute of limitations for bringing a suit for misappropriation of trade secrets is three years; see Civil Code section 3426.6.

So, I don't think you have a time problem from the legal standpoint. You may have a time problem from an infliction-of-damage standpoint, in that every day you tarry, your business is eroded. In my opinion, you also have an evidence and proof problem, which probably can be overcome if you have meticulous records and can spend some money on investigators, experts, and discovery procedures. You may also have a problem with your own agreement; if it over-reached, it may be unenforceable as to any provision.

I have handled several misappropriation of trade secrets cases and frequently write "legal" trade-secret protection agreements for small business employers. Please feel free to contact me for further details or a free review of your contract.

Re: non compete

You have a civil case for mis-appropriation of trade secrets and more. Call me directly at (619) 222-3504.