Legal Question in Civil Litigation in Alabama

As an independent contractor the answer most likely will lie within your contract. Without knowing all the facts, I would imagine that in your contract there is about a non-compete clause, or a separate agreement altogether. The law in Alabama is split. Many cases say that non-competes are not favored and unenforceable in some circumstances. However, Ala. Code 1975, � 8-1-1 (a) states, �an employee may agree with his employer to refrain from carrying on or engaging in a similar business and from soliciting old customers of such employer within a specified county, city, or part thereof so long as the employer carries on a like business therein.� Over the course of time there developed a four prong test to determine if a noncompetition clause/agreement is enforceable. A court will enforce a noncompetition agreement only if:

1) the employer has a protectable interest;

2) the restriction is reasonably related to that interest;

3) the restriction is reasonable in time and place;

4) the restriction imposes no undue hardship.

Then you would next need to look at copyrights, trademarks, and patents. Those may be issues depending on the size of the company and how shrewd the owner is. So unfortunately, I can only say it depends.

Assuming you do start your business, I would STRONGLY recommend you see an attorney. I usually help my clients from all over the state form an entity, get an agreement that sets out the rules, the profit and loss share, what happens if the entity fails, what happens if a partner becomes divorced, and give them tax advice to set them on the right track. Tons of business litigation has started by those who form a business but do not think about these issues and end up having a dispute. You may be friends today, but a dispute over money and you can be on opposite sides.