Legal Question in Business Law in Texas

An employee of mine decided to open a new company. Which is now our direct competitor, while on our payroll, quotes from his new company were given to one of our customers. The date of this quote is during the time of his employment with us. His name is listed as part owner of that company on the LLC. Is this legal? If so,how? Also, if not, what steps should we pursue?


Asked on 11/22/14, 4:42 pm

1 Answer from Attorneys

Michelle Scopellite Goldstein & Scopellite, PC

It depends on whether or not you had a non-compete agreement with him, what your policies and procedures were at that time for your company, and whether those policies and procedures are posted in view of the employees or they have to sign that they reviewed them.

If you did not have any of these, and it is confidential information that he took with him or shared to gain this contract or new business, there is a common-law cause of action that can be brought to protect confidential information. However, we would need more information as to what that information was that he used, before we could advise you further.

Next, I would highly suggest that if you do not have a non-compete agreement or policies and procedures prepared to protect your company and which employees are required to have notice of; that you allow our firm or another qualified business attorney or litigation attorney, to prepare these documents for your company, so that this does not occur again.

Goldstein & Scopellite, PC has qualified litigation attorneys, business lawyers and contract attorneys available to represent you at either one of their law offices located in Dallas, Texas and Tucson, Arizona - Please visit their websites at www.LawyersDallas.com and www.Lawyers-Tucson.com for more information or to contact them. Thank you.

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Answered on 11/23/14, 6:02 pm


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