Legal Question in Business Law in New York

Define Customer for non-compete clause

I was laid off in January. I had a non-compete clause in my employment agreement for 1 year not to contact any customer who had been a customer for 1 year prior to my departure. I had sold equipment to a customer 2 years earlier and made a bid on equipment 6 months prior to my departure that was not accepted. I wish to pursue this same business with the intent to sell. Were they a customer at 6 months prior with a bid or 2 years ago with a sale?


Asked on 7/31/03, 10:42 am

3 Answers from Attorneys
Robert R. Groezinger GroezingerLaw P.C.

Re: Define Customer for non-compete clause

That is a question of fact .... do you want to run the risk of a lawsuit if you contact them ...or just wait out the year and tell them that?

Good Luck

RRG

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Answered on 7/31/03, 11:58 am
Stephen Loeb Law Office of Stephen R. Loeb

Re: Define Customer for non-compete clause

The issue isn't so much if the company bought equipment from your former company or not, but more specifically if you were aware of this company or made contacts with the company through empolyment efforts cultivated during your employment at your employer.

That being said, non-compete clauses must be narrowly tailored and not overly restrictive in order to be enforced. Courts do not love enforcing these restrictions.

I wouldn't hang my hat on the proposition that the company is not a client because they failed to purchase equipment but if you can make a case that your plans do not hurt your former employer you may be able to justify your position.

The bottom line is that if your former company wants to sue they will sue whether they prevail or not in the end.

Should you like to discuss this or any other legal matter, you can call my office to schedule an appointment for a consultation or in the alternative, I can be reached for on-phone low-cost legal consultation at 1-800-275-5336 x0233699.

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Answered on 7/31/03, 12:15 pm
Asi Kirmayer Kirmayer PLLC

Re: Define Customer for non-compete clause

You need to have an attorney review this agreement for you before you make contact with this specific customer. It may take some legal research to find out the correct legal answer to this question.

However, irrespective of the correct legal answer, it is probably safe to say that if you are competing with your former employee using someone off of their "customer list" you can expect that they are going to contact you and claim that you are in breach of the non-compete agreement. You should also consider the possibility that your former employer will contact the customer who would then likely be very reluctant to do business with you. You may want to consider being upfront with the customer about this so that they are not surprised when they get a call.

If you would like to discuss this situation further, I would be happy to assist you and you may contact me at (212) 695-6400.

Best of luck.

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WARNING: This information is not intended to constitute legal advice and should not be relied upon for any purpose in lieu of consultation with appropriate legal counsel in your own jurisdiction.

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Answered on 7/31/03, 12:46 pm


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