Legal Question in Business Law in Texas

I was hired to start a new division of a gentleman's company. The division I started was an online e-commerce website. Once the business launched, I was terminated because he lost his license to conduct the main division of his company and he could no longer pay my salary.

I have since considered and am interested in starting my own ecommerce business selling the same products I was selling with his business. I have contacted vendors we used to get price quotes. Those vendors contacted my former employer to tell them that I contacted them. My employer informed me today that his attorney will be sending me a cease and desist letter and has grounds to sue me if I start my business.

I never signed a non-compete agreement and never verbally or in writing agreed to not engage in a similar business.

Does he have ground to make these accusations? Does he have a case for a lawsuit?


Asked on 8/26/11, 12:26 pm

2 Answers from Attorneys
Mark Dunn Mark D. Dunn

Nope - no grounds for a lawsuit or an injunction or any other kind of nonsense he may threaten you with. Thank God for free enterprise. Good luck in your new business.

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Answered on 8/26/11, 6:51 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I believe the answer is more complicated than the above. If you used "trade secrets" that belong to your former employer, you have liability. These can possibly include identity of vendors, pricing information, etc. Trade secret liability applies regardless and independent of non-compete agreements. Be interesting to see how the attorney letter is worded. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 8/28/11, 7:12 am


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