Old employer is suing me after starting my own shop

[kirby_24]

What is the name of your state? TN
The short version of the story is below.
Thanks

 

[seniorjudge]

Cut this in half.

Leave out all the editorial comments.

Use paragraphs.

 

[moburkes]

Cut this in half.

Leave out all the editorial comments.

Use paragraphs.

Seriously. You DO want someone to read this, right?

 

[seniorjudge]

...

This is a short version of the long story.

....

1281 words is not a short anything.

 

[kirby_24]

Sorry for the long version, just wanted to put all the information that might be needed. This is the short version

I worked for a company for 14 years & decided to go into business for myself approx 16 months ago while still employed with them. The owners knew I had started my own business and that I was planning on leaving & had no objections to it. Two months after I quit them, I was served with a lawsuit stating breaking my fudicary duty owed to them while I was there. I never signed any contracts or was asked to stop my business while I was employed with them. They are asking for the 14 months of past wages & any profits from any jobs that I completed at my own shop.
I have contacted several lawyers about this and they really don't know much about cases like this, but I do have an ex DA that wants to represent me. Do I have any ground to stand here? Any advise would be greatly appreciated.



If you want to know anything else, please just read the 1st part above.

 

[moburkes]

You will need to stop calling "random" lawyers, and get a referral from the local bar association from someone who is well-versed in non-competes (although you didn't have one).

 

[JoshDom1898]

ex DA? Yeah, you want a criminal attorney to represent you for a civil case...right.

And yeah, you probably did breach your fiduciary duty, whether or not you "sign a contract". I'm surpised that's the only count, I would have at least added unjust enrichment as well.

However, I'm sure with a decent attorney versed in business litigation would help reduce it. If you can prove you didn't profit during your employment there while you had your side business, you have a better shot. And pray you didn't take any trade secrets or otherwise from your ex-bosses company.

 

[kirby_24]

Moburkes,
Thanks for the suggestions, it will help. I did a search & found a lot of useful information to help with my defense in this matter.


JoshDom1898,
I left with what was mine, my tools & my experience as a machinist (the same things I had when I was hired) & nothing else.

I can see this the same as: a employee working for a heating & cooling company for so many years (to get more experience on the job) then braching off on his own to to start his own shop. If some of the old & new customers wanted to go with the new company over the old company, that would be their choice. The same for lawyers working for a firm for so long then wanting to branch off on their own. I think that today's society is just way to lawsuit happy & wanting something for nothing. Just my $.02 worth

 

[JoshDom1898]

You were working on the side while working for him no? Did I totally misunderstand one of the posts?

 

[kirby_24]

All I was doing was working 2 jobs. I would think that there are other people working 2 jobs as well that are not getting sued. It wasn't like I was working for NASA, it was a machine shop & the owner told us that he was planing on selling it (within 6-12 months). I had to start thinking about the future & 4 months after leaving that company I still have not taken any work from that company, I do make sure of that. The work that I am machining now is work that was going to other machine shops.

 

[JoshDom1898]

Your agrument is the same thing as saying "just because other people do it and get away with it it's ok for me to do it."

If you are working at another job (whether it's your own side business or not) while employed with your current employer that is in the same industry as each other it creates a conflict of interest, thus, you have breached your fiduciary duty to your employer.

Whether you want to admit it or not, you didn't get away with it. Yes, thousands of people do it, yes, thousands of people get away with it. You aren't one of them.

Hire an attorney.

 

[weatherbug]

:I am new to this forum stuff, but i found your post on google. I had to join this forum to reply to you.
My husband and I are currently going through the same situation. If you set your profile to receive private messages I can fill you in on what to expect. I am just not too comfortable discussing it publicly.

 

[moburkes]

:I am new to this forum stuff, but i found your post on google. I had to join this forum to reply to you.
My husband and I are currently going through the same situation. If you set your profile to receive private messages I can fill you in on what to expect. I am just not too comfortable discussing it publicly.

Are you in TN?

 

[kirby_24]

Weatherbug - I have it set up now. Finally someone who is going through the same thing & thinks it is unfair.

 

[pito]

I know this is old and probably history by now, but here is a philosophy. For public record, file a dba after termination. Non-compete violations are difficult for former employers to win and costly to pursue. In court, it comes down to how competition is defined, so if you are not actively soliciting your former's clients or prospects, your business actions are not intended to interfere with your former's financial goals, and you are in no way profiting from knowledge gained from your former tenure (except experience), then there is not really competition in the spirit of a non-compete agreement. Even though competition is inherent in the free enterprise system, a non-compete agreement, in the usual wording, pretty much says that you can't pursue a career in the same trade - which is why they are weak in the courtroom. They were mostly designed to prevent intangible theft, like taking your sales prospects with you. As it was put to me once, "I can't solicit your business (,but nothing prevents you from contacting me)." I probably have this all wrong, but this is my estimation from experience.
The only thing I would have done differently, in the original post, was to not tell my employer what my intentions were.