Legal Question in Business Law in Tennessee

Employee secrecy agreement and covenant not to compete

I'm concerned about the following:

3.02 Attorney's Fees and Costs

Employee agrees that in the event Employer and/or its related entities are required to employ the service of attorneys to enforce Employee's covenants and agreements set herein, employee shall pay all reasonable and necessary attorneys fees so incurred by Employer and all other costs and expenses.

In my eyes this allows my prospective employer to sue me at thier desgretion at any time, without incurring any costs to the employer. Because the agreement is designed to be transferable to new owners, and durable beyond my own life, I'm very concerned about entering an agreement that could require me or my heirs to pay thousands in legal fees whether I'm guilty or not.

How valid is 3.02 in the eyes of Tennessee law?


Asked on 5/03/07, 10:43 am

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: Employee secrecy agreement and covenant not to compete

Generally speaking, this type of contractual obligation is enforceable. However, it will not last beyond your life unless you violate the agreement, get prosecuted by the employer and a judgment is entered against you all before you die.

If you are truly concerned about this, you should take the agreement to an attorney to get a legal opinion about the substance of the agreement. This would include what the employer is attempting to enforce by way of the attorney's fees section.

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Answered on 5/03/07, 10:38 pm


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