Legal Question in Business Law in Texas

Re: EX-Employee starts business

If they do bring a lawsuit against you, you can bet that their story will be that your new business was not just your idea. You will need to make sure that you are not using any proprietary information that you received from your former employer for your own personal financial gain. I have a lot of experience representing parties on both sides of this type of lawsuit. It is not just a matter of taking information with you, but what you do with that information. As for as possibly violating the non-compete, this would depend on several facts. First, whether or not the non-compete was actually enforceable. It is difficult in Texas to have an enforceable non-compete agreement. Second, it would depend on the type of business you are in and that of your former employer. If you receive any correspondence from your former employer threatening to file a lawsuit, you should immediately consult an attorney.

Re: EX-Employee starts business

Anyone with the filing fee can bring a lawsuit against anyone else. Making it stick is a different matter. If your ex-employer says that they intended to go into that line of business, and your employment agreement had a broad non-compete which included business they intended to enter, then you may be on the receiving end of a lawsuit.

However, since you offered them the idea, and they rejected it, their suit probably would not have a chance. That doesn't necessarily get you out from under paying attorney fees for your defense.

Every business is under some legal worry in our present situation. The probability of your ex going after you is very small.