Please Help

I lived in Oklahoma and signed a non-compete to come to Pennsylvania to work. I work in the natural gas and oil field. The terms of the non-compete is very broad and states it is valid for 3 years. Also, it states that it extends into operating range of the area the company operates in but no specific mileage. The rest of it states the definition of non-compete, and if violated and injuction will be held against me, and no modifications without both sides signing. Now my company has been bought by another larger company. We still operate under the same name, but stocks were completely bought by the parent company and we are now receiving checks from the parent company with the words "_________ as paying agent" Is this non-compete valid if I go back to Oklahoma?

2 answers  |  asked Mar 22, 2011 4:47 PM [EST]  |  applies to Pennsylvania

Answers (2)

Scott Leah
There are several issues raised in your question.

1. Is the non-compete assignable? If not, it will not be enforceable.

2. Does the old company, or the new company, do business in Oklahoma? If not, they may not have a legitimate business interest in stopping you from working there.

3. What is the geographic scope and is it reasonable under the circumstances.

4. What is th scope of what it bars? Any employment by a competitor? Or does it bar you from doing certain jobs for a competitor?

If you would like me to look at your non-compete, please give me a call. 412-594-5551.

Scott Leah

posted by Scott Leah  |  Mar 23, 2011 05:25 AM [EST]
Christopher Ezold
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.

That being said, a noncompetition agreement must be reasonable in time and geographic scope. A court will likely find that 3 years is reasonable, but I cannot tell without knowing the facts and reading the document. Furthermore, while a specific mileage range is not set forth, a general geographic range of the "operating range" may also sufficient legally. Again, I'd need to know a great deal more.

If your company was bought, and the noncompetition agreement did not contain an 'assignment clause' allowing it to be assigned to the buyer, then the agreement may not be enforceable by the buyer.

I'd really need to review the agreement to give you a better idea of your options.

If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.

/Christopher E. Ezold/
The Ezold Law Firm, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com

posted by Christopher Ezold  |  Mar 22, 2011 5:10 PM [EST]

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