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Screwed by a non-compete clause

Discussion in 'BBS Hangout' started by rockbox, Oct 7, 2013.

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  1. Felixthecat

    Felixthecat Contributing Member

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    I've reserved my special yellow snow cone just for you too bud.
     
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  2. rockbox

    rockbox Around before clutchcity.com

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    Thanks Pipe and Max. The new company says they are willing to fight it, and have their HR lawyers looking at my agreement. The fact that the non-compete is so broad in scope of work and geography should help me.
     
  3. DaDakota

    DaDakota If you want to know, just ask!

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    They can not stop you from working if there is no compensation attached, or you are using trade secrets.

    DD
     
  4. Pipe

    Pipe Contributing Member

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    Correct, if they attempt to enforce the noncompete in an overbroad manner (you can't work anywhere in the US) then they are only entitled to injunctive relief (don't solicit our customers that you did business with any more) not monetary damages (money out of your pocket for lost profits).

    Very important, make sure you don't have any of your ex-employer's property in your possession (laptop, cellphone, files, etc.)

    Fine print: this is not legal advice as I am still in a Holiday Inn Express, but just an opportunity to tell DaDakota not to give up his day job as a semi-retired video game potentate. ;)
     
  5. supafrumpy

    supafrumpy Contributing Member

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    I'm glad this is the case. Did they mention this to you during the inital interview/signing of the contracts? That is some underhanded BS if they did not.
     
  6. heypartner

    heypartner Contributing Member

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    And by "etc" Pipe is referring to their stapler!

    [​IMG]

    But, of course, you could always burn down the building.
     
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  7. MadMax

    MadMax Contributing Member

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    What? You can't pay someone not to compete. Cash can't be consideration for a non-compete in Texas.
     
  8. 111chase111

    111chase111 Contributing Member

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    I knew a guy that was in litigation for a non-compete clause in Houston (he was an accountant that left a firm and went out on his own). He won every case but the firm fought him up to the Texas Supreme court where the firm eventually won but they were awarded no compensation from the guy.

    However, it cost the guy over $100,000 for this litigation. The guy was saying he won because the court didn't make him pay anything. However, I think the firm just wanted to make it painful for him to quit and to make it apparent to other employees that quitting under these circumstances would be extremely painful.
     
  9. MadMax

    MadMax Contributing Member

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    Exactly right. Usually there aren't any economic damages in these cases, and the real meat of the case is during the temporary restraining order and temporary injunction hearings. The clauses in the contracts typically include language where the parties acknowledge from the beginning that arriving at a number for economic damages will be difficult, if not impossible, so injunctive relief is an appropriate remedy.
     

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