What is the name of your state? CALIFORNIA
Here we go. Two partners and myself started a new service company ('ADK')in our city/county. We formerly worked part-time for a similar-in-type service company ('APC'). On the side while working for 'APC', on of the partners and I ran our own companies to provide stable living while working part-time. These side companies of our own were still of the same service (computer networking). The Owners A knew that we did this and still hired us to work for them. About three months ago, we found out that APC was being sold to a new Owner B. Owners A informed us that we needed to stay at least through the sale so they could get their money. We obliged, but we informed them that we were not going to stay. I informed the Owners A that I was going to continue to ramp my business up and they were okay with that fact. The company was sold and two of us resigned the day ownership took place. The other partner had already quit at this time. We left and formed our own company. By memory and phone books, we contact some of the APC customers and informed them as a courtesy that we left the company for this reason. They asked what we were going to do, and we told them. They wanted to come with us. They asked us if we signed a non-compete and we did not sign one or anything. However, after about two weeks, we come to find out that they are producing this confidentiality agreement staying that customer lists are their trade secret and we violated this rule. They are requesting a "cease to exist" order. I guess they are trying to convince the customers that we lied to them and in addition they are suing us. Are we dead in the water here?
No non-competes were signed, but apparently confidentialty agreements were signed (we did not know or realize this until today).
Thanks,
Adam
Here we go. Two partners and myself started a new service company ('ADK')in our city/county. We formerly worked part-time for a similar-in-type service company ('APC'). On the side while working for 'APC', on of the partners and I ran our own companies to provide stable living while working part-time. These side companies of our own were still of the same service (computer networking). The Owners A knew that we did this and still hired us to work for them. About three months ago, we found out that APC was being sold to a new Owner B. Owners A informed us that we needed to stay at least through the sale so they could get their money. We obliged, but we informed them that we were not going to stay. I informed the Owners A that I was going to continue to ramp my business up and they were okay with that fact. The company was sold and two of us resigned the day ownership took place. The other partner had already quit at this time. We left and formed our own company. By memory and phone books, we contact some of the APC customers and informed them as a courtesy that we left the company for this reason. They asked what we were going to do, and we told them. They wanted to come with us. They asked us if we signed a non-compete and we did not sign one or anything. However, after about two weeks, we come to find out that they are producing this confidentiality agreement staying that customer lists are their trade secret and we violated this rule. They are requesting a "cease to exist" order. I guess they are trying to convince the customers that we lied to them and in addition they are suing us. Are we dead in the water here?
No non-competes were signed, but apparently confidentialty agreements were signed (we did not know or realize this until today).
Thanks,
Adam