Legal Question in Business Law in Michigan

Former Employee Looking for Fresh Start

I am the Director of Operations for an online retailer and have been for about 4 months. After looking at the business practices of the corporate leadership, I felt I could do a better job on my own and am looking to start my own business in a similar arena. Interestingly enough, I have signed NO contract of employment or any sort of non-disclosure agreement dictating the terms of my employment. What are my options when beginning this new venture? Does my current employer have any grounds for a lawsuit over a former employee going into direct competition? Some of the business contacts I've established are ones I would like to explore with my new company. Am I under any legal requirement not allowing me to do so? I am listed on payroll and the company pays medical insurance and takes care of W2 paperwork...Does this have any bearing?


Asked on 5/06/03, 8:48 pm

1 Answer from Attorneys

Patricia Prince Patricia Gormely Prince, P.C.

Re: Former Employee Looking for Fresh Start

Based on what you've given, without any non-compete/non-disclosure agreement in place, your current employer would have a tough time keeping you from directly competing with your own business if you struck it out on your own. Of course, this assumes that you do not "take" any property, such as copyright or patented materials (by the employer), when you leave. You should also be careful in dealing with customers/clients who are already under contract with your employer. If you cause a contract to be breached just so the customer/client can sign on with you, then you could be inviting a tortious interference claim by your employer against you, as well as a breach of contract claim against the customer/client - something neither would like. It is also unfortunate that playing it straight won't necessarily prevent the employer from filing a lawsuit against you, if it is so inclined; but unless you interfere with existing business relationships as described above, you should be fine.

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Answered on 5/07/03, 8:28 am


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