Non Compete Agreement

[Chachalaca]

Good day everyone!

I have been working in the autmomotive industry for a few years with 2 different companies. I worked in the state of Michigan where I signed a non compete agreement. At that time I didn't thoght about opening my own company but now I do. I want open a company in Mexico (I'm mexican) but it may compete, or have common costumers with my old company, although I had no contact with none of them during my work on that company. Is it likely that I will have legal problems with my old company?

Thank you for your answer.

Regards.

 

[single317dad]

Is there a geographical scope in your current agreement?

You cannot be restricted from doing business in an area where the company does not engage in commerce. If the company does do business in your area of Mexico, which seems to be the case from your brief description, and you attempt to do business with the company's customers during the duration of the contract, then you may be in violation.

One thing to consider is that, while non-competes can be contested in court, the fact is that you could easily be sued, and a lawsuit could take a much higher financial toll on you than it would a large company, regardless of who ended up winning. Your best course of action would be to stay away from the company's customers and any restricted geographical areas for the duration of your agreement.

 

[latigo]

Good day everyone!

I have been working in the autmomotive [sic]industry for a few years with 2 different companies. I worked in the state of Michigan where I signed a non compete agreement. At that time I didn't thoght [sic] about opening my own company but now I do. I want open a company in Mexico (I'm mexican) [sic] but it may compete, or have common costumers [sic] with my old company, although I had no contact with none of them during my work on that company. Is it likely that I will have legal problems with my old company?

Thank you for your answer.

Regards.

You are not about to get any help from here having provided nothing but the above limited and confusing information.

You'll need an attorney to look at the covenant and ask the necessary questions "cara a cara". The factors affecting the enforceability of a covenant not compete are too numerous to be explored and developed in this restricted medium.

Moreover, Mexican courts may look at these agreements differently than in the USA. So, you'd better seek the advice of an attorney acquainted with its laws.

But curiously how could you be employed "with 2 different companies" in the same industry (obviously in competition with one another) and yet be bound by a covenant not compete?

And how could you possible predict that your "new company" will not be in "contact" with customers of your "old company" (?) before your Mexican company is even organized?