HB Ad Slot
HB Mobile Ad Slot
Think Before You Shoot on Noncompete: Why The Threatening Letter May Not Be Your First Move
Monday, October 12, 2015

Let's talk about the importance of thinking a few steps ahead before businesses have their lawyers send the proverbial nasty lawyer letter.  Those letters certainly have their place in many contexts, but  you should think through the possible responses to the letter and be sure before the letter goes in the mail that you are ready to deal with the consequences.

So it is when an employee departs and is believed to be working for a competitor in violation of a noncompete agreement.  There are many situations where it is appropriate to begin the chess match of enforcing the noncompete by writing a letter notifying the former employee – and perhaps the employee’s new employer – that she is in violation of her agreement and threatening further action. However, noncompete law differs markedly from state to state. One risk to consider when you send the described letter:  If the law in the recipient’s state is less favorable to enforcement, what if the employee and/or the new employer run to court there and get a more favorable forum. If you had not sent the letter, you might have been able to get the matter to court in your state. 

The bottom line – don’t rely on a one-size-fits-all reflex (whether it be the client’s or the lawyer’s) response.  As noted, it’s a chess game, not one shot for winner-takes-all.

HB Ad Slot
HB Mobile Ad Slot
HB Ad Slot
HB Mobile Ad Slot
HB Ad Slot
HB Mobile Ad Slot
 

NLR Logo

We collaborate with the world's leading lawyers to deliver news tailored for you. Sign Up to receive our free e-Newsbulletins

 

Sign Up for e-NewsBulletins