non-compete in name of old company, not new parent company
I sold my minor stock to my partner. He sold to a larger co. At acquisition,I signed a covenant not to compete with my old co., which , with the acquisition, became a subsidary of the new parent company.(contract is in the name of old Company, not new parent co.) My consideration was my employment as manager, a job I already had for 5 years when I owned part of the old company. This new Employment agreement was for 5 years. Non-compete is two years once I leave the company. I was hired/promoted to a corporate position within the parent company after 5 years. In new role, my responsibility is for over 30 subsidary firms in several states, including my old firm, but essentially ending all local community and customer ties of former company. I thought I fulfilled the noncompete 2 years after I was hired/promoted within parent company with new role. I left the company entirely 10 months ago and now have started my own company of the same nature in the same county of my former company. Since I fulfilled the 5 year employment agreement as manager of my old company, and was promoted within the parent company to a totally different job and function requiring frequent travel (held 4 years), have I fufilled the 2-yr. non-compete if technically it is within the same company? What about the fact that my contract was with the old company, not the new one? They don't think so!!
Awaiting patiently.
Answers (1)
Non-compete situations can sometimes be negotiated so that the restrictions are lessened in exchange for certain promises. I can't tell what is appropriate without looking at the facts in a good bit more detail than you have given. If you would like to come to Raleigh for a consultation I can help you. Alternatively, I can give you the names of firms in Winston-Salem or Charlotte that could give you competent advice.
posted by Reagan Weaver | Oct 20, 2003 08:42 AM [EST]
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