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Non-compete & solicitation of business question...

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tjfiretech

Junior Member
Oregon

Hello all… I have a question regarding a non-compete agreement. I signed a non-compete agreement with my former employer almost six years after I had begun work for them. The fact that it was not a condition of employment & that I received absolutely nothing to sign it (along with a number of other factors – Oregon does not seem to be on the business owner side of non-competes) essentially made the contract null & void.

I stopped working for that employer & started exclusively working for myself in March of 2013… I was subsequently threatened with a lawsuit & my former employer had their lawyers make all sorts of demands that I comply with to stop legal action from occurring. I was forced to get a lawyer myself & draft a response stating that their non-compete wasn’t enforceable, I didn’t keep any company files, I did not directly solicit their clients, etc. It seems as if Oregon tends to be on the side of the business owner in regards to the non-solicitation portion. They seemed to back off after my response letter & no lawsuit was ever filed.

It specifically states in the non-compete I signed that I will not solicit any of their customers in the one year period following my termination of employment – I haven’t. It also states that I will not “during or after my employment” (no time frame) “disclose, copy, use, take away, or use for my personal benefit or the benefit of others the customer lists and/or confidential business information.” The one year mark is just about here so my question is this: Can I now go after the customers that I knew about/did work for during my employment/etc.? I don’t have my previous employer’s customer lists, I just know of certain people I had good business dealings with in the past while working for this other company. Can I not bid on the work at this point?

If anyone needs additional information I’d be happy to share it. I also have copies of the non-compete, the threatening letter, & my formal response.

Thanks in advance for any advice on this issue!

- Tristan
 


LdiJ

Senior Member
Oregon

Hello all… I have a question regarding a non-compete agreement. I signed a non-compete agreement with my former employer almost six years after I had begun work for them. The fact that it was not a condition of employment & that I received absolutely nothing to sign it (along with a number of other factors – Oregon does not seem to be on the business owner side of non-competes) essentially made the contract null & void.

I stopped working for that employer & started exclusively working for myself in March of 2013… I was subsequently threatened with a lawsuit & my former employer had their lawyers make all sorts of demands that I comply with to stop legal action from occurring. I was forced to get a lawyer myself & draft a response stating that their non-compete wasn’t enforceable, I didn’t keep any company files, I did not directly solicit their clients, etc. It seems as if Oregon tends to be on the side of the business owner in regards to the non-solicitation portion. They seemed to back off after my response letter & no lawsuit was ever filed.

It specifically states in the non-compete I signed that I will not solicit any of their customers in the one year period following my termination of employment – I haven’t. It also states that I will not “during or after my employment” (no time frame) “disclose, copy, use, take away, or use for my personal benefit or the benefit of others the customer lists and/or confidential business information.” The one year mark is just about here so my question is this: Can I now go after the customers that I knew about/did work for during my employment/etc.? I don’t have my previous employer’s customer lists, I just know of certain people I had good business dealings with in the past while working for this other company. Can I not bid on the work at this point?

If anyone needs additional information I’d be happy to share it. I also have copies of the non-compete, the threatening letter, & my formal response.

Thanks in advance for any advice on this issue!

- Tristan
If the one year period has passed, you are certainly free to solicit anyone that you like.
 

latigo

Senior Member
Oregon

Hello all… I have a question regarding a non-compete agreement. I signed a non-compete agreement with my former employer almost six years after I had begun work for them. The fact that it was not a condition of employment & that I received absolutely nothing to sign it (along with a number of other factors – Oregon does not seem to be on the business owner side of non-competes) essentially made the contract null & void.

I stopped working for that employer & started exclusively working for myself in March of 2013… I was subsequently threatened with a lawsuit & my former employer had their lawyers make all sorts of demands that I comply with to stop legal action from occurring. I was forced to get a lawyer myself & draft a response stating that their non-compete wasn’t enforceable, I didn’t keep any company files, I did not directly solicit their clients, etc. It seems as if Oregon tends to be on the side of the business owner in regards to the non-solicitation portion. They seemed to back off after my response letter & no lawsuit was ever filed.

It specifically states in the non-compete I signed that I will not solicit any of their customers in the one year period following my termination of employment – I haven’t. It also states that I will not “during or after my employment” (no time frame) “disclose, copy, use, take away, or use for my personal benefit or the benefit of others the customer lists and/or confidential business information.” The one year mark is just about here so my question is this: Can I now go after the customers that I knew about/did work for during my employment/etc.? I don’t have my previous employer’s customer lists, I just know of certain people I had good business dealings with in the past while working for this other company. Can I not bid on the work at this point?

If anyone needs additional information I’d be happy to share it. I also have copies of the non-compete, the threatening letter, & my formal response.

Thanks in advance for any advice on this issue!

- Tristan
I'm at a loss to understand your purpose here

What "advice" is needed regarding the "noncompetition agreement" when by its literal construction it will shortly become entirely moot and meaningless?!

The satisfaction gained out of your past legal foray with the former employer's lawyer might be of interest to you, but since it did not result in a judicial determination of applicable Oregon law, not necessarily of interest to strangers.
 

tjfiretech

Junior Member
I'm at a loss to understand your purpose here

What "advice" is needed regarding the "noncompetition agreement" when by its literal construction it will shortly become entirely moot and meaningless?!

The satisfaction gained out of your past legal foray with the former employer's lawyer might be of interest to you, but since it did not result in a judicial determination of applicable Oregon law, not necessarily of interest to strangers.
In all honesty, I'm just trying to triple check everything & cover all bases. I'm having trouble effectively articulating what's in my head, so my apologies on what may have seemed like a pointless post. I'm simply terrified that I may have overlooked something, or that there could be a way my former employer could actually have a case against my company for soliciting people with whom I've done business with for him in the past. I realize that a portion of the non-compete states "one year" but it also states:

"I will not, during or after my employment with COMPANY, disclose, copy, use, take away, or use for my personal benefit or the benefit of others COMPANY's customer list(s) and/or Confidential Business Information (including but not limited to its management, marketing and sales manuals, customer ledgers, sales cards and service cards which I have obtained through my employment with COMPANY.)"

It sounds like they are referring to tangible items, I'm only worried that they could say "The only way you could have known to contact this person at this company is through your employment with Company. In the letter that their attorney sent me it says: "Under the Oregon Uniform Trade Secrets Act, ORS 646.461 et seq., you had and still have a duty to preserve Company's confidential business information for the sole benefit of Company You have no right to use or disclose that information for your own personal gain."

Now, the letter they sent was a complete scare tactic... It cited multiple cases where huge awards were paid out & most didn't come close to being applicable to my particular situation. But still, I wan't to make sure I don't contact anyone for an opportunity to bid before I've made sure I'm not walking into a huge mess.
 
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