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I signed a non compete 5 yrs ago. My company is merging with a competitor. I would like to start my own company and doing this will take a lot of business from them. The company is based in Texas and I live in Utah were I will take some of the business from them to mine. This is all I know and I feel the company and managment is headed down the wrong path. Can or will I get sued? This will be about a 6 million dollar per year business.
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An agreements not to compete is a contract between you and your employer, and therefore the law of contracts applies. Whether a covenant not to compete is enforceable depends on several facts. In a case like this, two big issues will be whether the agreement was reasonable in duration and scope.
If a court finds the agreement enforceable, then the employer can and often will go to court seeking damages. In general, the damages will be equal to the employer's loss of profits. If they can prove what their gross profit would have been in the absence of a breach, then the exposure can be significant.
Obviously, these cases can be fairly complex and fact-intensive. This answer should not be taken as legal advice. If you need an opinion specific to your situation, then it would be wise to set up a consultation with an attorney. I can certainly give you an appointment if you decide to do so.
Answered on Feb 04th, 2013 at 7:49 PM