What is the name of your state? Dallas, Texas
key points:
- I left my company several months ago
- I signed a severance agreement which included several years of non-compete and non-solicitation language.
- The non-solicitation language included terms that I specifically couldn't solicit employees or investors. Included where any investors that the company ever talked to regardless if they ever actually made an investment.
I was a fairly senior finance executive in the company and have executed multiple severance agreements with terminated employees over the years. At a very simple level, I always understanding over the last several years that non-solicit (and non-competes) were enforceable based on certain limiting criteria (reasonable geography, scope, time) but more broadly they were enforceable to the extent that they protected the company. For example, stealing customers or employees could be damaging to a company.
Question: Investors (think private equity funds and ultra high net worth family offices) are in the business of making investments and are HIGHLY sophisticated. Can such a non-solicit be enforceable....especially if an investor never made an investment? Seems there is no damage to a company and such a term would be overly damaging to my ability to earn a living. I have been in this particular industry for over 10+ years and part of my job was raising capital....especially to investors who regularly invest in this industry (i.e. real estate).
key points:
- I left my company several months ago
- I signed a severance agreement which included several years of non-compete and non-solicitation language.
- The non-solicitation language included terms that I specifically couldn't solicit employees or investors. Included where any investors that the company ever talked to regardless if they ever actually made an investment.
I was a fairly senior finance executive in the company and have executed multiple severance agreements with terminated employees over the years. At a very simple level, I always understanding over the last several years that non-solicit (and non-competes) were enforceable based on certain limiting criteria (reasonable geography, scope, time) but more broadly they were enforceable to the extent that they protected the company. For example, stealing customers or employees could be damaging to a company.
Question: Investors (think private equity funds and ultra high net worth family offices) are in the business of making investments and are HIGHLY sophisticated. Can such a non-solicit be enforceable....especially if an investor never made an investment? Seems there is no damage to a company and such a term would be overly damaging to my ability to earn a living. I have been in this particular industry for over 10+ years and part of my job was raising capital....especially to investors who regularly invest in this industry (i.e. real estate).