Independent Contractor HELP

[Cameron1692]

I am currently an independent contractor for a coaching company based out of California and handle all lessons/camps in Texas. As of right now I am at the point where I am wanting to split ways and start my own coaching company due primarily to him (the owner) being about a month and a couple weeks behind on payments totaling to right around $3-4K (not including another $1-2K from a camp I am running this Sunday).

The dilemma I am running into is that per agreement I can't technically work out any of the guys I am been coaching for the past year and half that I have received through this company for 18 months after terminating the contract. Is there anyway around this? If he owes me a sum of money isn't he in breach of contract? What if he does eventually catch up on payment(s) and I still decide to terminate, am I still unable to work with the players I have built up?

Thanks for any help and sorry if this was the wrong place to ask this Q.

 

[adjusterjack]

We can't read your contract from here so we don't know if he's in breach or to what extent.

Generally, however, non-competes can be enforced by the courts if they are reasonable.

So you don't necessarilyy get out of the non-compete because he is behind in paying you.

And when one provision of a contract is breached, often the rest of the contract can remain enforceable, especially if you have a remedy for the breach. In other words, you can enforce payment by suing him so you'd still be obligated to the non-compete.

Whether the non-compete itself is enforceable might be a bit iffy with an 18 month duration. But that's something for a court to decide.

Bottom line, if you breach the non-compete you are likely to be sued for any money you make off your clients and you could lose that money along with the many thousands you'll have to pay a lawyer to defend you and you could even end up paying your opponent's lawyer fees.

Presumably you were aware of the potential consequences of a non-compete or did you just sign it without thinking about it? I fell into that trap once, a long time ago, when I was young and naive. Never signed another one since.

Might be worth a couple of hundred to have your contract reviewed by an attorney for some professional legal advice about any chance you have of beating the non-compete. Keep in mind that, even with an optimistic response it will still cost you to litigate.

 

[Zigner]

I am currently an independent contractor for a coaching company based out of California and handle all lessons/camps in Texas. As of right now I am at the point where I am wanting to split ways and start my own coaching company due primarily to him (the owner) being about a month and a couple weeks behind on payments totaling to right around $3-4K (not including another $1-2K from a camp I am running this Sunday).

The dilemma I am running into is that per agreement I can't technically work out any of the guys I am been coaching for the past year and half that I have received through this company for 18 months after terminating the contract. Is there anyway around this? If he owes me a sum of money isn't he in breach of contract? What if he does eventually catch up on payment(s) and I still decide to terminate, am I still unable to work with the players I have built up?

Thanks for any help and sorry if this was the wrong place to ask this Q.

This all really depends on the wording of your contract, and contract review is beyond the scope of this forum. You would be wise to consult with a local attorney.

With that said: Just because he's in breach doesn't mean you can also breach the agreement.

 

[Cameron1692]

We can't read your contract from here so we don't know if he's in breach or to what extent.

Generally, however, non-competes can be enforced by the courts if they are reasonable.

So you don't necessarilyy get out of the non-compete because he is behind in paying you.

And when one provision of a contract is breached, often the rest of the contract can remain enforceable, especially if you have a remedy for the breach. In other words, you can enforce payment by suing him so you'd still be obligated to the non-compete.

Whether the non-compete itself is enforceable might be a bit iffy with an 18 month duration. But that's something for a court to decide.

Bottom line, if you breach the non-compete you are likely to be sued for any money you make off your clients and you could lose that money along with the many thousands you'll have to pay a lawyer to defend you and you could even end up paying your opponent's lawyer fees.

Presumably you were aware of the potential consequences of a non-compete or did you just sign it without thinking about it? I fell into that trap once, a long time ago, when I was young and naive. Never signed another one since.

Might be worth a couple of hundred to have your contract reviewed by an attorney for some professional legal advice about any chance you have of beating the non-compete. Keep in mind that, even with an optimistic response it will still cost you to litigate.

Thanks for the help. I signed it and definitely see now that I shouldn't have.. Live and learn.. I think I am going to go the safe/free route and just break up and start fresh. Seems like my best bet as of right now.