QUESTION
What action can I take against an employee that started a company and took clients while still employed?
Asked on Mar 08th, 2017 on Business Litigation - Texas
More details to this question:
I am reaching out to you to inquire about a situation I am in. I have a small business in Corpus Christi which deals in general contracting and construction. I had an employee who started his own business and started doing business with my biggest client without my knowledge while using a company vehicle , expenses and collecting a check. His title was production Manager and he was the main man in the field. I am gathering information in hopes that I have some kind of case against him. Please let me know if there is anything I can do. Thanks
2 ANSWERS
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Paul C. VanSlyke, Senior Counsel at Hoover Slovacek LLP
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It sounds like you have a strong case. I suggest you make a careful survey of what the employee may have taken with him. For example, computer files and paper copies made on your copier. Hold a meeting with your employees and ask them if they witnessed the employee making copies or copying computer files. Find a lawyer who has experience with trade secret and proprietary rights cases.
You can now sue in Federal Court under the new Defend Trade Secrets Act.
Answered on Mar 30th, 2017 at 11:26 AM
It appears that your former employee breached his fiduciary duty to you by soliciting your customers while still employed by you. Depending on numerous facts which are not apparent from your email, and the particular nuances of Texas law, you may be able to enjoin the former employee from competing for some time, recover some or all of the profits he made from your customers. At the least, you should be able (if you can prove the facts you allege) to recover the compensation you paid the former employee during the period when he was disloyal and acting in his own interests.
Answered on Mar 08th, 2017 at 11:33 AM