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can i legally take this client?

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dreamofthe90s

Junior Member
I used to work for "XYZ" company but left around a month and a half ago and haven't worked there since. My former boss called a couple of days ago with an emergency and asked if I can service one of his new clients. After the job was completed they showed a lot of interest in me and I was wondering if I could legally take on this client as my own as I don't work for XYZ any longer. Here's part of the original contract I signed with XYZ...

"Technician will not solicit clients that were originally obtained through XYZ. If Technician renders services to any such client within two years from the date Technician last rendered any services for XYZ, Technician agrees to pay XYZ liquidated damages in the amount of $X per client."

So basically my questions is this: is there any gray area since I serviced the client while technically not employed by XYZ? and since it was a client I have never serviced before while I was employed by XYZ does that make any difference? Is there anyway I could take on this client as my own without any legal trouble?

Thank you to anyone who can shed some light on this!!
 
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xylene

Senior Member
Hire a lawyer to review the exact circumstances and the enforceability of the non-compete agreement.
 

latigo

Senior Member
I used to work for "XYZ" company but left around a month and a half ago and haven't worked there since. My former boss called a couple of days ago with an emergency and asked if I can service one of his new clients. After the job was completed they showed a lot of interest in me and I was wondering if I could legally take on this client as my own as I don't work for XYZ any longer. Here's part of the original contract I signed with XYZ...

"Technician will not solicit clients that were originally obtained through XYZ. If Technician renders services to any such client within two years from the date Technician last rendered any services for XYZ, Technician agrees to pay XYZ liquidated damages in the amount of $X per client."

So basically my questions is this: is there any gray area since I serviced the client while technically not employed by XYZ? and since it was a client I have never serviced before while I was employed by XYZ does that make any difference? Is there anyway I could take on this client as my own without any legal trouble?

Thank you to anyone who can shed some light on this!!
And I would thank you if you might tell us in what state of the United States you would be performing services for such a client. Because the courts in the various states of the USA are not uniform in their treatment of covenants not to compete. For example in California they are not enforceable. By statute they are void ab initio.

Also, if in the USA and California would not be involved, then what did you receive in consideration for the covenant? In other words, what was the quid pro quo other than the fact of your employment? And were you an at will employee or for a fixed term? Or would your status have been that of an independent contractor?

Also, what were the circumstances leading to the termination of your status?

If the covenant is otherwise enforceable, I don’t see that the fact that your former employer introduced you to the client has any legal significance. No more that if you were to directly solicited the client. A factor which I assume you were counting on.
 

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