Can company sueing me recover money from me?
I am being sued for breach of a non-compete and I already lost my job with the company I am working for until this matter is taken care of. My worry now is if the company that is sueing me can recover any money from me personnally. I have contacted some of there customers when I went to the other company, but never sold them anything. Any help would be greatly appreciated.
Thank You
Answers (1)
The company can sue for damages, but must prove it has damages
A non-compete lawsuit is essentially a suit for a breach of contract. The normal remedy for a breach of contract is an award of money damages. Non-compete cases are unique in that the remedy is more often than not an injunction, which is what is stopping you from continuing your competitive employment.
Importantly, unless the contract says otherwise, an injunction is not the exclusive remedy. The company can get an injunction and, if it proves that it lost business as a result of the contract breach, may also be able to recover the amount of its lost profits as damages.
The key, however, is that the company must prove that you actually caused it damage. If you did not, the case should be over.
Regards,
Neil Klingshirn.
posted by Neil Klingshirn | Jun 6, 2006 3:38 PM [EST]
A non-compete lawsuit is essentially a suit for a breach of contract. The normal remedy for a breach of contract is an award of money damages. Non-compete cases are unique in that the remedy is more often than not an injunction, which is what is stopping you from continuing your competitive employment.
Importantly, unless the contract says otherwise, an injunction is not the exclusive remedy. The company can get an injunction and, if it proves that it lost business as a result of the contract breach, may also be able to recover the amount of its lost profits as damages.
The key, however, is that the company must prove that you actually caused it damage. If you did not, the case should be over.
Regards,
Neil Klingshirn.
posted by Neil Klingshirn | Jun 6, 2006 3:38 PM [EST]
