Legal Question in Business Law in New Jersey
Non Compete
My former employer, while I have no record of ever signing a non-compete while in his employ, is threatening lawsuit against me. He says I have engaged in improper actions while under my new employment for a direct competitor.
We are in advertising and he says that I contacted 3 advertisers and told them not to continue doing business with him. I have never told anyone that. 1 of them I never spoke to at all and one I tried to help him with. The circumstances of the latter, the rep that was assigned after I left would not return the client's calls, so I gave the client the owner's name and number so that she could continue advertising with him.
He is demanding unconditionally that I provide him with written assurances that I will not contact any of his clients, which sounds like he is asking for a very broad non compete after the fact.
I am willing to assure him that any client that is not currently with my present employer and whom I handled while under his employ and who is considered a current client (meaning they advertised within the last 13 months) I will not contact til 1 year after my departure and any client that is with my current employer I will not contact until the agreement with him is over. Will this work?
3 Answers from Attorneys
Re: Non Compete
The initial question I have is whether or not you actually signed any form of non-compete with the former employer. I will assume in this post that you did not, however if in fact you did, the analysis changes.
You are under no obligation to withhold contact with the former employer's clients, unless the former employer is able to establish that his client list represents a trade secret of the business. If this cannot be established, then your proposal to your former employer should be enforceable if drafted in an agreement properly.
Re: Non Compete
I have read what the other attorney said.
I suggest you consult an attorney located not too far from you, who handles business litigation, and who has had some real experience (pursued and/or defended at least 2 or 3 lawsuits) on non-compete agreements.
I suggest that you NOT sign anything, nor agree to anything, until you get a lawyer's advice.
Disclaimer: Your question and any response does NOT create an attorney-client relationship between you and this law firm. You can not rely on the statements made by an attorney given over the internet. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.
Re: Non Compete
Disputes involving trade secrets and employer confidential information are sometimes complex and often turn on subtle facts. I agree that you should consult a lawyer who is experienced in business litigation and intellectual property. I would advise against communicating with your former employer at all except perhaps to generally deny that you are doing anything wrong. Even so, that would be better to come from your lawyer. I definitely agree that you should not sign any after the fact agreement unless it is part of a settlement in which you have gotten competent legal advice. You have absolutely nothing to gain by negotiating by yourself. You should also consider the fact that you need to ensure that anything that you give to your former employer is not damaging to your current employer. Otherwise, you could wind up minus your new job and still in a lawsuit with your former employer.
I have handled non-compete disputes for both individuals and businesses. Base on my experiences, I think that you would benefit by getting some information on what things you can do and what you can't. There is some other information that you need to know that is best not discussed in an open forum. If I can be of further help to you, please call or contact me by email. The first consultation will be free.
See also: http://info.corbettlaw.net/lawguru.htm
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