I sold a business, and may face non compete litigation soon

I sold a business based in PA which sold medical alarms over the internet. The buyer is based in Ohio. As part of the sale agreement there is a 5 year non-compete provision.

1 year after signing, I was offered a job by a competitor to be a field rep here in PA. I got a letter from the buyer's attorny fishing for information, and replied back to it saying "if your client intends to litigate, then proceed.

Here are the points I think help me...
1. I sold a company that did business over the internet only. As a field rep I am doing a completely different form of business
2. I have never solicited a former client
3. I have never solicited a former referral source
4. When I sold my company, as part of the sale, the buyer got my website, 800 #, and customer lists.
5.I sell a new type of product in the marketplace that did not exsist when I sold my company
6. I have never said a bad thing about the people whio bought my business
7.I do not have any trade secrets, all of the information regarding prospects in my territory is public knowledge
8. If I loose this job, I will have to declare bankruptcy, and loose my house
9.I waited a year before getting back into the business

If they proceed with litigation, I need an attorney

1 answer  |  asked Jun 8, 2013 1:54 PM [EST]  |  applies to Ohio

Answers (1)

Bruce Elfvin
Initially, it is never a good idea to have your former employer feel that you want them to file a case. You should understand that non-compete agreements are legal in Ohio, but have limits in terms of time, scope and geography. As there are some dire consequences to getting sued, I think the better course would be to spend money on legal advice that will keep a lawsuit from being filed and allow your current employer to have confidence that it will not end up in the middle.

So, the long and short of my advice is: 1. get employment counsel; 2. have them deal with the attorney for the former employer; and, 3. keep your employer informed to insure that you are not sucked into litigation. If Ohio law governs your sale get an Ohio employment lawyer.

We have defended and been involved in cases to get out from under non-competes in the past, you can reach Elfvin & Besser at 216.382.2500, or find an attorney you like at www.oelasmart.net/directory

posted by Bruce Elfvin  |  Jun 11, 2013 11:31 AM [EST]

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