Legal Question in Business Law in Kentucky

New company name - old non-compete still binding?

I signed a non-compete agreement with a former employer. After I started work, the company filed for bankruptcy and changed the name by adding the word ''for'' in the original company name. No new contracts were made up with the name change, and now I am being threatened with a lawsuit over breach of the non-compete. Will that old contract hold up even though the company no longer exists under the name on the contract I signed? Also, the employer contacted me recently and told me that they were aware of other former employees that breached the non-compete agreement but did not prosecute them. Can they pick and choose when they enforce the contract? Since they set a precedent with the other employees, why all the sudden can they decide to come after me?


Asked on 1/21/02, 9:08 am

1 Answer from Attorneys
Philip Owens Philip M. Owens, Attorney at Law

Re: New company name - old non-compete still binding?

There are several faces of the problem here. One of course is the original "non-compete" agreement. Was it assigned to the new company. If so, then the new company can seek enforcement. The second point to consider after the suit is filed to attempt enforcement is to find out if the new company notified you of the assignment. This can be used in the defense as well as the fact that they have not engaged in a uniform enforcement practice. This may be important if it ever went to a jury.

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Answered on 1/21/02, 9:24 am


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