Non-Compete Validity

Hi,
In 1998 I got an offer letter from CompA. I accepted it. When I showed up for work , I was made to sign an Employement Aggrement which included the non-compete clause.

The company was sold in 2001 and then merged with another company in 2003. I did not sign anything with the newer companies.

If I join my current client from CompA , will the non-compete be enforceable ?

Is the non-compete still valid.

Thanks !

1 answer  |  asked Feb 12, 2003 7:48 PM [EST]  |  applies to Pennsylvania

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Answers (1)

Christopher Ezold
It is unlikely the noncompete is still valid in Pennsylvania.

K. Raj:

I believe you posted a similar question recently with different facts. Under the limited facts set forth in this questions, in my opinion it is unlikely that the noncompete is still enforceable in Pennsylvania. Noncompete agreements are generally not transferrable from one company to another, regardless of whether the first company is being sold or merged.

However, if you were paid a premium by the new companies in 2001 or 2003 for your continued compliance with the noncompete, you may have an obligation to abide by it.

The facts in your scenario are limited, and there may be other facts that would change my opinion; should you wish to discuss this issue further, please feel free to call me at the below number.

/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
401 City Line Avenue,
Suite 904
Bala Cynwyd, PA 19004
(610) 660-5585

posted by Christopher Ezold  |  Feb 13, 2003 09:23 AM [EST]

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