Legal Question in Civil Litigation in California

Re: Competition clause in contract

Generally, non-competition clauses in California are unenforceable. There are exceptions, however. I would need to review the language of your contract to see if any exceptions apply. For future reference, there are things you can do to protect your business outside of trying to impose a non-competition clause. One is a non-solicitation agreement, which would be perfect in this situation. These provisions must be carefully drafted and be suited for the particular employment arrangement.

Also, if the IC was being paid by you at the time he was soliciting your customer, you may have some recourse for breach of duty. Additionally, the IC may actually be an employee, regardless of title, which would give you a better case for breach if he was in fact working while soliciting.

Was the identity of your client a protected trade secret, that only employees and IC know?

Re: Competition clause in contract

Sure, you can sue, but there is no guarantee of success. California does not favor 'non compete' agreements. If it has reasonable terms, maybe. Feel free to contact me if serious about pursuing it, if the case is in SoCal.

Re: Competition clause in contract

There is new case precedent as of August 2008 that non-competition clauses are not enforceable in California except under certain narrow circumstances. You likely, however, have a claim under unfair competition (interference with contract), particularly since this was done before ending the business relationship with your company.