<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by NorthHumr:
Bought a business last year. Previous owner still owes bills and taxes. Further information suggests she may be operating the same type of business against a non-compete clause. Besides just the logical approach of obtaining a lawyer, what would be the next recommended step? And what type of lawyer would you recommend. I believe I have enough data to show fraud.<HR></BLOCKQUOTE>
My response:
The previous owner is still on the hook for all liabilities, unless what you bought was a corporation, or unless you agreed to take on the liabilities in your contract of sale. Fraud? No facts were stated in that regard; however, if there is a "valid" noncompete clause in your contract, then you may very well have, at a minimum, breach of contract. A noncompete clause is subject to State statutes, and Case Law. All because you have a signed agreement with a noncompete clause, does not make it valid. Yes, you are going to need an attorney; one who can take a detailed look at the papers and what is going on.
IAAL
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[This message has been edited by I AM ALWAYS LIABLE (edited April 03, 2000).]
