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Am I violating non-competition contract?

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sator

New member
Hello.

I've owned a custom jeans company since 2014 as a side business and have continued the business through all the following events. In late 2016 I entered talks with a canvas and leather goods company, company A, to collaborate on some apparel for them. That project never took off because in May of 2017, I was hired by company A and company B, another leather goods company, to oversee production for both companies. Both A and B shared a workshop space and the owners were friends, although no legal ties between the companies exist. Both companies had me sign separate non-competition agreements.

In September of 2017, the owners had a falling out and company B moved to a different location. I went with them worked exclusively for them. Several times during my employment with B, company A and I tried to get the collaboration project going again but neither of us had time. The owners of company B were supportive of both my side company and specifically told me I could work with company A as long as it didn't interfere with their business, i.e. leather products, although I have no written proof of this.

I was fired from company B earlier this month due to a mistake I made. I have now begun talks with company A again regarding the collaboration project. However, I fear I may be violating company B's non-competition contract which reads as follows:

"During the term of Employee';s employment with the Corporation and for a period of two (2)
years thereafter, Employee agrees that he will not, directly or indirectly, own, operate, manage,
consult with, control, participate in the management or control of, be employed by, maintain or
continue any interest whatsoever in any enterprise located within a 50 mile radius of
[Company B] or any other wholesale company which manufactures, processes, or
markets custom shotgun shell, bullet, or similar leather products of any nature, without
the prior written consent of the owner of the Corporation.
During the term of Employee's employment with the Corporation and for a period of one (1)
year thereafter, Employee agrees that he will not solicit or contact any of the customers, clients,
or brokers with whom Employee has had contact during the term of his employment with the
Corporation."


Now, I have turned down a request from company A to start designing leather goods for them as I know that is a direct violation of the contract. This "collaboration" with A in reality is just selling jeans to them as a wholesale account, but with both our logos stamped on the label. There is no design or consulting involved.

If I decide to sell these jeans to company A, does company B have a leg to stand on if they want to make me stop? My argument is that there was no exception made for the other company in either contract, so technically, they had me sign these contracts with the understanding that I was going to violate them the instant I signed. In fact, it was a condition of my employment that I work for both companies because at the time neither could afford to pay me full time.

Thanks for your advice.
 
Last edited:


quincy

Senior Member
What is the name of your state? Or, if not in the U.S., what is the name of your country?

Contract review and analysis is beyond the scope of this forum.
 

sator

New member
The companies are in Georgia, but I love in Florida. I assume where I live doesn't make a difference.
 

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