Legal Question in Business Law in California

Re: non-compete agreement

Even though there is no non-compete agreement and even if there was one, it probably wouldn't be enforceable, there are certain no-no's for you in starting up your own business.

You may want to check out my article at: http://www.legalwarriors.com/new_page_5.htm

regarding non-compete agreements.

I would be happy to consult with you on this matter. You DEFINITELY will want to get legal advice on what to avoid.

J. Caleb Donner

DONNER & DONNER

LEGAL WARRRIORS (R)

325 E. Hillcrest Drive, Suite 242

Thousand Oaks, CA 91360

Tel: 805-494-6557

Fax: 805-494-0990

email: [email protected]

website: www.legalwarriors.com

DISCLAIMER

This reply constitutes legal information for education purposes and does NOT constitute legal advice nor establish an attorney-client relationship. We will only represent you based on a written retainer agreement. Therefore, you should contact this office to discuss representation if you do want legal advice/representation.

Re: non-compete agreement

There may be liability if the customer list was expensive and difficult to procure. Please call me directly at (619) 222-3504.

Re: non-compete agreement

you bet he does and you could be violating certain busines and profession code sections and not know it. it does not matter whether you have a contract or not and it is very technical --- i am in n. ca of if you would want to consult with me 925-945-6000.

Re: non-compete agreement

even absent an express non-compete agreement in place, it could still be illegal for you to "take clients" from your former employer. my best advice for you would be to retain house counsel for your new business to help ensure you do not intentionally or inadvertantly do anything illegal while setting up your new business. such house counsel could literally save you thousands from potential lawsuits and attorney fees. if you would like such house counsel assistance like this, which would allow you to concentrate on your business alone while being protected legally, feel free to contacy my office directly for more information and very affordable fees.

Re: non-compete agreement

Preventing you from soliciting anyone, not part of a non-competition provision of your employment contract, could well be an illegal restraint of trade and contrary to California law. On the other hand, it does matter whether you are using a confidential list of your former employer to do the soliciting. If you are not, but are only using the contacts you made while employed, your O.K. That doesn't mean that your former employer could not turn around and sue you any, but you stand a good chance of winning. Employing an in-house attorney is probably more than you need to do, even in this situation.

Re: non-compete agreement

Information about customers and potential customers is considered "trade secret" in California and most other states. Unfair use or misappropriation of a trade secret subjects the mis-user to suit for damages.

Generally, you will win if the only information you use is available from directories and other public sources. If, however, you have learned special needs, such as birthdays, color preferences, private home phone numbers, spouse's first name, and on and on, you are on rather thin ice and a suit could be successful.

Information about customers can be the employer's trade secret even if the information was developed by the former employee, if it was done on company time and at company expense.

Your former employer's chances of winning will range from pretty good to rather slim depending upon how valuable any information you used was, and how obvious it is to the judge or jury that the information probably came from your prior employment and not from your research on your time.

Re: non-compete agreement

Thank you for your posting.

We all operate in a free marketplace, and clients choose to go with whomever offers the best service for the lowest price. However, an employer can sue if you did in fact steal their trade secrets, such as customer lists or other documents or property of theirs, and of course, they can sue for "interference with contract" or defamation, depending on the individual facts.

I'd agree with the advisement to get an attorney. Even a well drafted letter to the old company can help stop expensive litigation.

I hope that this information helps, but if you have other questions, want more information, or feel that you need legal representation, please feel free to email me directly at [email protected]. I am happy to help in any way that I can.