Non-compete anti-competitive?
I signed a non-compete agreement with my employer, an ad agency, (Agency A) and was later laid off due to economic conditions. The non-compete forbids me from servicing or soliciting former clients for a period of one year regardless of whether the termination was voluntary or involuntary.
One of my former clients, however, has not been happy with the agency's service and had been in talks with another agency (Agency B) before I was dismissed. Now, the former client is interested in Agency B handle their account.
I had nothing to do with this arrangement, but if I accept a job with Agency B to serve the client, am I running a risk? The client works with several agencies but hasn't worked with Agency B yet.
Also, I don't have any legal background, but because the client is seeking competition, would the non-compete raise any anti-trust issues by limiting competition?
Answers (1)
It is impossible for any responsible lawyer to give you sound advice without knowing much more about you, what you did for Agency A, the language of your non-compete and what you would be doing for Agency B.
That being said, Judges are NOT fond of non-compete agreements especially where, as here, YOU were laid off and did not leave voluntarily. That is just one of many factors that a court would weigh to determine whether the non-compete would be enforced as written or would be modified.
Putting this aside, if Agency B wants you badly enough, they may be willing to sign an agreement whereby, if you are sued by Agency A, they (Agency B) will pay for your legal defense (with you selecting the lawyer) and will pay for any judgement that might be entered against you.
I encourage you to get a comprehensive consultation from a qualified lawyer. I wish you well.
Steve Modica, Esq.
Modica & Associates
Rochester, New York
posted by Steven V. Modica | Feb 26, 2002 9:08 PM [EST]
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