Legal Question in Business Law in Delaware
Non Compete Contract Term
Ten years ago I was compensated for an agreement not to compete with my employer on the single product line that we manufactured and sold. The single line had only a few competitors and little effect on me if I wanted to find another job.
Since that time my company has acquired other manufacturers and we have a multitude of product lines. Am I now banned from taking a job at the many companies that sell each of these product lines even though I only agreed to not sell against a single line, ten years ago?
2 Answers from Attorneys
Re: Non Compete Contract Term
Probably not. Non-compete agreements are limited by the courts in their enforceability to reasonable limits, and a 10 year old agreement is unlikely to be enforceable, unless the product knowledge or trade secrets are something really special (and that is doubtful), however, the agreement must be reviewed along with the actual facts surrounding the transaction, before legal advice or recommendations could be given.
Re: Non Compete Contract Term
This area is a special interest of mine and I wrote a paper on these covenants-not-to-compete in law school. That said, two major forces must be reckoned with: the terms of the written agreement itself, and the case law of precedents which determines the regulation and interpretation of the agreement.
Surely you will understand that without reviewing the entire agreement it would be irresponsible to grant an opinion. If this is a serious matter to you I strongly advise you to meet with an attorney and have the contract, and any support or collateral documents such as employee handbooks in effect with you so the attorney can give a responsible opinion.
Good luck,
James D. Jenkins
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