Legal Question in Business Law in Missouri

Re: Taking customers from a company

Even with no non-compete clause, the former employer might have a valid cause of action based upon the theory of tortious interference with a business relationship. There may be a grey area between fair competition in the market place and interfering with an existing business relationship, and it is impossible to guess the outcome of possible litigation. If you would like a more detailed analysis and advice specific to your facts, I would require an in office consultation. Then, I would conduct a modest amount of legal research on the current state of the law and provide you with a written opinion letter upon which you could rely. I would charge a reasonable fee for this service. If you are interested, you may contact me at the office.

Re: Taking customers from a company

The problem with this approach is that it involves issues of theft of trade secrets. Specifically, you have indicated that the employee knew of the bid price of the other company, and used that information to underbid. The company's bid price was not readily known, and therefore, was likely considered a trade secret. In that situation it is likely that a judgment for theft of trade secrets could be obtained. If the list of customers was considered proprietary information (and was not generally known in the former employer's company, and efforts were made to keep that information secret), then there is a good chance that the customers solicited by the employee could themselves be considered trade secrets.

Further complicating this issue, there are matters of breach of fiduciary duty between the employee and the employer. When you add all this up, it makes the short term gain associated with underbidding the former employer just that -- a short term gain. Even if you successfully avoid a judgment, you'll be on the hook for legal fees and expenses.

This opinion is based solely on the information you've provided, and additional facts could change the opinion. You are encouraged to contact an attorney in your local area to help you with this matter.