Sales and Service Non Compete and Changes in Pay
David and John were sales and service technicians for a printer company. They had each signed agreements with restrictive covenants at the beginning of their employment relationship. After an acquisition and change in management, the company made substantial changes to their compensation and terms of employment. In addition, the approach and style adopted by new management put significant pressure on David and John, and their relationship with management became strained and unpleasant.
David and John were both subject to non compete agreements. However, they did not have access to company trade secrets, and the largest customers they dealt with were brought to the company by them in the first place, meaning the goodwill and relationships pre-dated their employment. The compensation changes were substantial enough to make their continued employment financially unreasonable. For that reason, David gave his notice of resignation. After he gave his notice, the employer searched his emails and discovered that he and John had been considering starting their own business. John was immediately fired. The employer also filed a lawsuit in short order, as well as a motion for preliminary injunction seeking to bar David and John from proceeding with their business plans. They were then faced not only with the interference with their business plans, but scrambling to find legal representation in order to respond to the preliminary injunction motion. Non Compete SolutionFaced with short notice of the preliminary injunction hearing, we worked with David and John to quickly gather all information relevant to their employment and their non competition agreements.
We concluded that they did not have any trade secrets or confidential information belonging to the employer. We further concluded that the employer's claim to goodwill was weak. This was because the major customers at issue had a relationship with David before he ever began employment. Finally, we believed that the changes in compensation and employment terms following the sale of the business could void the non compete. We went to the hearing on the preliminary injunction and made all of these arguments. After the hearing, the parties went to mediation and ultimately settled the dispute. David and John received compensation and were able to continue their new business. |
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Postscript
David and John continue to operate the new business that they started six years ago. They are able to operate their business and relationships with customers as they see fit, and pursue their own business vision.
If you find yourself in a similar situation, remember that even if deadlines are tight an experienced employment attorney can help identify the defenses you may have to your non compete, as well as other claims you may have against your employer.
If you find yourself in a similar situation, remember that even if deadlines are tight an experienced employment attorney can help identify the defenses you may have to your non compete, as well as other claims you may have against your employer.
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We have years of experience representing people in non compete lawsuits in Massachusetts state and federal courts, as well as responding to cease and desist letters, and we would be happy to help. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
