Legal Question in Business Law in Arizona

I previously worked for a gold firm where I was an independent contractor. I developed the entire business model that is currently used. I developed the advertising that brought in the leads. Some advertising I even paid for myself. All the internet leads came to my computer and from there were given out to various brokers. At one point I backed up the leads onto my personal computer at home via a mobile me account. On Sept 17 5:30 PM I was made to sign a non-compete agreement and on Sept 18 at 12:00 pm I was fired. I was told I would be paid for all my deals that were in the pipeline. When that did not occurred I called 2 of the leads that i had been working and they decided to do business with me with another firm. I am being sued for stealing trade secrets. My question is: is a lead (someone who is not a client) a trade secret? Is there any case law precedent ?


Asked on 1/31/10, 8:38 am

2 Answers from Attorneys
Gregory Poulos The Poulos Law Firm

A trade secret is something particular to the operation of a company. Your business model, for example, might be considered a trade secret if it was not generally known, provides economic benefit and is kept secret. A lead does not fit this definition.

There is not enough information in your question to give a proper response. For example, you say you were "made" to sign a non-compete agreement. What were the circumstances? The terms of your non-compete are critical to determine whether it is valid or enforceable and what it protects.

Being sued for stealing trade secrets is very different than being sued for breach of the non-compete. Without knowing more facts about your case, it is impossible to determine what your exposure (or possible counterclaims) might be.

Providing case law precedent is beyond the scope of this forum.

I strongly recommend that you consult with an attorney to discuss this matter.

Greg Poulos

[email protected]

Disclaimer: This answer does not create an attorney-client relationship and is for informational purposes only. It is not, nor is it intended to be, legal advice. You should consult an attorney for legal advice addressed to your individual situation.

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Answered on 2/05/10, 8:57 am
Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

We would need to review the independent contractor agreement, if any, and the non-compete agreement to determine where you stand. If you have been served with a Complaint, you have a limited time to Answer or the Plaintiffs may file a default judgment. You may have counterclaims that need to be addressed as well. In any event, the case law precedents depend on the exact fact pattern and documents. Call us to set up a document review and consultation and we'll let you know your options and the costs involved.

Thomas J. Gadd,

Paralegal to The Firm

Law Offices of Donald W. Hudspeth, P.C.

3030 N. Central Avenue, Suite 604

Phoenix, AZ 85012

[email protected]

tele. 602.265.7997, ext. 106

fax 602.265.6099

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Answered on 2/05/10, 1:25 pm


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