Legal Question in Business Law in New York
non-complete/disclosure
When I was hired as a salesman for an oil distributor I was made to sign a non-compete/disclosure agreement. I was forced to leave the company. Three months later I went to work for a competitor, however I am in a different territory. My old company found out and sent an attorney letter to me and my new company stating that I can't solicit customers of the old company for a period of 2 years from my date of leaving them. Here are my questions
Is the non-compete agreement I signed legal and binding? As I am working a different territory, how am I supposed to know who their customers are?
If their customers call my new company and solicit them directly - does that violate the clause?
3 Answers from Attorneys
Re: non-complete/disclosure
Non-compete/disclosure agreements are valid in New York but they must be specific as to time and territory. Otherwise, the agreement may not be valid. What do the terms of your agreement state? Those terms will govern and if they are too restictive, the agreement may be held invalid.
Re: non-complete/disclosure
Your questions cannot be answered without reviewing the actual text of your former employment agreement and/or a separate non-compete/non-disclosure agreement.
However, a few general observations may be of help to you. If a non-compete clause is "reasonable" (looking at its geographic scope, time period and other factors), it is often enforceable, though many non-competes tend to go "overboard" (especially in non-executive, non-ownership employee contexts) and cross the line. Yours also appears to have a non-solicitation clause, which is a slightly different animal. Finally, if you and your new employer already received a letter from your former employer's counsel, you should assume they may be willing to take this further and litigate and draw appropriate conclusions (depending on your new employer's appetite for litigation).
These answers are in the nature of general information, are not legal advice and should not be relied upon as such. If you would like me to review the relevant documents, feel free to give me a call.
Re: non-complete/disclosure
Non-compete clauses are generally legal and enforceable provided they are reasonable in terms of time and scope. I can't answer your questions specifically without going over your specific contract and the allegations of breach. If you'd like please set up an appointment.
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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