QUESTION

Am i restricted under a non compete clause if the clients chooses willing to come to me?

Asked on Jan 11th, 2013 on Contracts - Maryland
More details to this question:
I am a tax preparer and i was recently let go, and had to file for unemployment, no fault do to my own. I believe i signed a non compete clause earlier in the year prior to me knowing they were gonna let me go. I was reminded of the agreement. The agreement states I can not actively pursue any of my previous companies clients nor am i able to advertise within 50miles of the company and for 3yrs. I don't believe it's fair because i never received my full salary as agreed at the beginning of the year, I was let go because there was lack of work, and this job skill has been the main job paying my bills and making a living for me and my family. Previous clients are looking for me, and even after i tell them i am no longer working for that company, they still choose to come to me. Can i be sued if the clients are actively looking for me and choosing me instead of my prior employer? And what is the likely hood of this non compete being enforced by a judge in Maryland?
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1 ANSWER

Business Litigation Attorney serving Bethesda, MD
2 Awards
Your question about non-competition clauses raises a number of important issues that may be of broad general interest to readers of this site. I have been representing clients on both sides of these issues in Maryland and D.C. for over 20 years. Certain noncompete agreements and noncompetition clauses are still enforced in Maryland. However, the trend in the reported cases seems to be that the clauses must be ever more limited in scope in an ever broadening technological world. These cases are very fact specific. Very generally, the more unique the skill set of the employee, the more likely a court is to enforce such an agreement. For example, a group of workers at a nuclear power plant were considered in one case not to be sufficiently specialized to justify a very rigorous noncompetion agreement. Also, very generally, the courts are more likely to protect an employer's existing clients than a pool of potential customers in a geographical area. Also, the longer the term the employment agreement seeks and the bigger the geographical area, the less likely a court is to enforce the full territory or time period. Too broad a time period or territory can void an entire agreement. Your question does not address a number of related inquiries that commonly arise in these cases. For example, someone who is not a party to a contract who intentionally tries to get one party in a contract to break their contract with another party to that contract may be liable to that other party to the contract both for actual damages and for punitive damages. In your situation, a customer who got you to break your contract with your former employer (if the noncompetition agreement was otherwise enforceable) might be liable for "tortious interference" with that agreement in a suit by your former employer.  Of course, many other factors too long to list can also intervene that could alter the above. This is at best a general overview. I encourage you, and all other readers, before you act (or decide not to take some action) to seek competent, local legal counsel who can address the specific facts of your particular situation. This web site and the responses herein, including this response,  are designed for general information only. The information presented at this site should not be construed to be  and is not formal legal advice. No attorney-client relationship exists and no attorney-client relationship is formed or created by this response or any response on this website. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.
Answered on Jan 12th, 2013 at 1:45 PM

This web site and the responses herein, including this response, are designed for general information only. There is no attorney/client relationship.

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