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pick3311

Guest
What is the name of your state?NC
I recently quit a job with a company in my area, and went to work with a competitor. I gave two weeks notice, stayed 3 weeks at the request of the company, to see if things worked out. They did not. So I left. My ex employer is now threatening a lawsuit against both myself and the company I am working for. They are upset because several of my customers, all of which I brought with me to the old company, are now buying from me at the new company. They are also discussing this with customers and vendors. I understand they are upset, but my question is on what grounds could they sue me. With the exception of quitting, I played by the rules. Very few people knew I was even considering a change, and I did not actively recruit my customer base before I left. Any suggestions? I believe that they are going to say I caused them financial hardship by through lost revenue. I was their top salesperson in the area.
 


BelizeBreeze

Senior Member
Tortious interference with a business relationship.

However, the absolute defense to such a case would be that you did nothing to steal ex-employer's files, lists or customers, took no protected information with you and the customer's decision to change suppliers was theirs and theirs alone.

Be warned though, if you called them from your new employer AFTER your separation intead of them calling you initially, then a case CAN be made.

It's time to see a local business attorney for a face-to-face.
 
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pick3311

Guest
It is not unlawful or improper, standing alone, to hire away someone else's employee so long as the person doing so wants to use the employee's services in advancing his own business rather than with the intent of destroying the other employer's business. This is true regardless of how much the loss of the employee may inconvenience his former employer. The mere fact that someone's activity has injured another in his business does not mean that the latter may recover because, in a free enterprise system, a businessman has no legal complaint concerning a loss resulting from lawful competition, including competition for the services of skilled employees. If the means of competition are fair, the advantage gained should remain where success has put it.

So I guess my question is, if I am hired to be a salesperson for a compay, in my chosen field, even though it is in direct competition, am I not allowed to go after clients who I have dealt with in the past, as well as new clients?
 
Answer

"So I guess my question is, if I am hired to be a salesperson for a compay, in my chosen field, even though it is in direct competition, am I not allowed to go after clients who I have dealt with in the past, as well as new clients?"

As Belize pointed out, the answer to your question is, "No...you are NOT allowed to "go after" clients you have dealt with in the past." You admit that you inteionally recruited them away from your ex-employer's business. If the customers had approached you first, you'd be safer, but since you are admitting to actively recruiting these people away, you are guilty of interfering with your ex-employer's business, whether you intended harm or not.

It is looked at as a sort of theft to the business. In order to contact ex-customers, you would have had to have taken some type of information with you - contact information, order inforemation, etc. That information belonged to your ex-employer and was for their use in order to continue their business relationship with that customer. The fact that you took it without their knowledge and permission is akin to stealing.

As Belize suggested, you need to get yourself an attorney to help you sort it all out.
 
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pick3311

Guest
Okay...one more quick question.

These are customers that I have dealt with for 10yrs. I have sold them product at different distributors, not just my ex employer. The information I have is in my head, and a direct result of my experience in the industry, and my years in the industry. These are customers that I brought to the table. If they are customers that i have dealt with for years, and not just with this one company, does that still hold true?


Thanks for your information.
 
Answer II

I'm not positive, as I have never personally dealt with this situation, but my guess is - you're still in hot water.

First of all, you are fortunate that none of the previous employers sued you for taking these customers.

Second, once you bring the customers "to the table," as you put it, they still become the "property" of the current employer and you are NOT free to take them with you when you leave, even if you did so with information "in your head".

Again, I am not positive (I am not an attorney; I am a HR professional), so my advice to see an attorney still stands - maybe now more than ever!
 
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pick3311

Guest
Thanks for your input. I actually signed a non compete with a previous employer, and they released me from it. This is definately a new situation for me. Thanks for your advice.
 

divgradcurl

Senior Member
Be warned though, if you called them from your new employer AFTER your separation intead of them calling you initially, then a case CAN be made.
BB is correct here, but the important thing to remember is that the former employer has to prove that you are taking the customers or interfering with their contracts in order to harm the former employer -- simply taking the customers, even if you contact them first, for your own gain is not enough to give rise to tortious interference.

It is looked at as a sort of theft to the business.
No, it's looked at as an "unfair business practice" which is quite different from theft. As long as the taking of clients is the result of lawful competition, just because someone else loses the business doesn't mean there has been a "theft."

In order to contact ex-customers, you would have had to have taken some type of information with you - contact information, order inforemation, etc. That information belonged to your ex-employer and was for their use in order to continue their business relationship with that customer. The fact that you took it without their knowledge and permission is akin to stealing.
Maybe -- but now you are looking at trying to prove "misappropriation of trade secrets," which is an entirely different beast from tortious interference, and very state-dependent on what it necessary to prove misappropriation. Further, you don't even know if these qualify as "trade secrets" -- if people outside the company know who's buying what from whom then, by definition, they can't be trade secrets.

Second, once you bring the customers "to the table," as you put it, they still become the "property" of the current employer and you are NOT free to take them with you when you leave, even if you did so with information "in your head".
"Property?" Please. If the customers were happy with the "former employer," they could simply stay with the former employer. Customers are not obligated to stay with a particular vendor if their favorite saleperson goes to another company, or starts his own business. Customers can make up their own mind, and unless there is some sort of contractual obligation in place, customers are free to buy from whomever they wish -- regardless of who initiates the contact.

Tortious interference is generally only found in two cases -- where someone interferes with contractual relationships between a customer and vendor, and when someone tries to steal away another company's employees. Unless there is some sort of contract that the OP is convincing the customers to breach, you are very unlikely to have a case for tortious interference.
 

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