non-compete
I am an IT professional in Pennsylvania. I signed a non-compete agreement 3 months after i started working at my previous company, XYZ. The agreement says that i cannot work with any of XYZ's clients or its subsidiaries for 1 year after termination of employment. There is no mention of any geographic limitation. I left XYZ and am now working through another vendor for the same Client. XYZ is sueing me for breach of the non compete clause. What should i do ?
1 answer | asked Mar 17, 2005 03:32 AM [EST] | applies to Pennsylvania
Answers (1)
You likely have a valid defense to XYZ's lawsuit.
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, you likely have a valid defense to XYZ's lawsuit. In Pennsylvania, when an employee signs a non-competition agreement, they must receive something of value for their promise not to compete. The courts call this the 'consideration' the employee receives for their promise. While the courts consider beginning new employment to be adequate consideration, the courts do NOT consider continuation of current employment to be adequate consideration. You signed the agreement three months after you started working, receiving continued employment as consideration; unless you received something else of material value for your promise not to compete, you likely have a valid defense (lack of adequate consideration) to XYZ's lawsuit. Without reading your contract, however, I cannot determine whether it contains such other adequate consideration.
Your question asks, however, "what should you do?" You should retain an attorney immediately and answer the complaint within 20 days of having been served with it, or have your attorney file preliminary objections within that same 20-day period. Which course is preferable will be determined by your attorney.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
401 City Line Avenue,
Suite 904
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Mar 17, 2005 08:22 AM [EST]
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, you likely have a valid defense to XYZ's lawsuit. In Pennsylvania, when an employee signs a non-competition agreement, they must receive something of value for their promise not to compete. The courts call this the 'consideration' the employee receives for their promise. While the courts consider beginning new employment to be adequate consideration, the courts do NOT consider continuation of current employment to be adequate consideration. You signed the agreement three months after you started working, receiving continued employment as consideration; unless you received something else of material value for your promise not to compete, you likely have a valid defense (lack of adequate consideration) to XYZ's lawsuit. Without reading your contract, however, I cannot determine whether it contains such other adequate consideration.
Your question asks, however, "what should you do?" You should retain an attorney immediately and answer the complaint within 20 days of having been served with it, or have your attorney file preliminary objections within that same 20-day period. Which course is preferable will be determined by your attorney.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
401 City Line Avenue,
Suite 904
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Mar 17, 2005 08:22 AM [EST]
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