What do I do?

I signed a letter of non-compete that is for 18 months. I've been away from this company for 13 months. Have never received any letter from them until now. I am over 1000 miles away from the company and don't feel I am selling anything competitive to my previous employer. Now they have sent me a letter telling me to I cannot sell wood products like they offer.

2 answers  |  asked Dec 16, 2014 05:34 AM [EST]  |  applies to North Carolina

Answers (2)

Reagan Weaver
You may have a basis to ignore the letter, although I'm not ever inclined just to ignore a demand. The most important part of the option of ignoring is evaluation. You should obtain counsel to evaluate whether the covenant has any validity. Some covenants fail for lack of consideration. Some might fail for other reasons. It could be that you have some risk involved or it might be that your risk is very low. When you get that information, then you can shape your response accordingly.

Mr. Wilms could probably help you with this. I'm not taking new cases presently.

Good luck!

posted by Reagan Weaver  |  Dec 16, 2014 1:34 PM [EST]
Chris Wilms
There are a few options. One is to negotiate a release of potential claims in exchange for a release of the non-compete. Another is to ignore it and take the risk that he/she is bluffing. Another is to file a declaratory judgment action declaring the non-compete unenforceable.

Non-competes are restraints on trade, and are heavily disfavored in the law. In order to have an enforceable, several legal requirements must be met.

Getting a lawyer familiar with recent non-compete case law developments would be helpful in advising you on which options are going to be most beneficial for you. There has been some substantial development in this field by the NC Court of Appeals in the last few months.

posted by Chris Wilms  |  Dec 16, 2014 06:08 AM [EST]

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