Non Compete?

[Logoman]

I have a friend that bought an Ad Specialty Business and the person he bought it from signed a Non Compete for 5 yrs. The person is still working for the new owner but they have issues. They still think they can still do things they did when they owned it. Does a Non Compete hold up if the person quits? I have heard that a Non Compete does not mean squat so he will just be out of luck if the previous owner quits and calls on all customers to try and take them with them.

[inkman996]

Non Competes are worthless unless you are a big corp with high powered lawyers. A sign guy in our town is notorious for selling his business, signing non competes, takes a long vacation and returns with a new business and all his old customers return to him. The current victim has been trying to take legal action but cannot afford what is truly necessary. He ended up turning the business in to a Sign O Rama franchise but is still struggling because the A Hole stole back all the customers in the area.

[ZooCity]

The non compete holds up as outlined in the sales agreement, if it's in there than absolutely he can enforce it.  He better hope it's laid out clearly however or then, yes, it's endless lawyer fees and time. 

We are currently in a 3yr covenant not to compete and it's laid out very clearly exactly what that means (what we cannot do) and exactly what happens if we break the non compete.  If we broke the terms I believe it would be very cut and dry, we would owe our buyer X as lined out in the contract which they could very easily enforce in the appropriate court.  Anyone can drag out the process of enforcement (or anything legal for that matter) but at some point it's going to wind back around to the contract.

That guy sounds like a total dirtbag inkman. 

[GKitson]

I have a friend that bought an Ad Specialty Business and the person he bought it from signed a Non Compete for 5 yrs. The person is still working for the new owner but they have issues. They still think they can still do things they did when they owned it. Does a Non Compete hold up if the person quits? I have heard that a Non Compete does not mean squat so he will just be out of luck if the previous owner quits and calls on all customers to try and take them with them.

He with the most lawyers wins, talk to a meat eating divorce lawyer if you want the best results on fighting it.  Go figure!

~Kitson

[inkman996]

The non compete holds up as outlined in the sales agreement, if it's in there than absolutely he can enforce it.  He better hope it's laid out clearly however or then, yes, it's endless lawyer fees and time. 

We are currently in a 3yr covenant not to compete and it's laid out very clearly exactly what that means (what we cannot do) and exactly what happens if we break the non compete.  If we broke the terms I believe it would be very cut and dry, we would owe our buyer X as lined out in the contract which they could very easily enforce in the appropriate court.  Anyone can drag out the process of enforcement (or anything legal for that matter) but at some point it's going to wind back around to the contract.

That guy sounds like a total dirtbag inkman.

No doubt a well written non compete will hold up and I am pretty sure the Sign O Rama guys has a solid one, thats not the issue tho. Its the endless attorney fees that makes it almost impossible to enforce. We are talking small businesses, and a small business that is seriously in the red already because the guy stole the work. Funny thing is this guy has been known to do this several times already and yet he always finds a sucker to fall for his crap. When i say he goes on extended vacation I mean he goes to Florida in his Yacht and travels the carib for a year. He is filthy rich and rarely works.

[mk162]

it also depends on the state, a lot of times a right to work state is a lot harder to enforce non-competes.

[tpitman]

The non compete holds up as outlined in the sales agreement, if it's in there than absolutely he can enforce it.  He better hope it's laid out clearly however or then, yes, it's endless lawyer fees and time. 

We are currently in a 3yr covenant not to compete and it's laid out very clearly exactly what that means (what we cannot do) and exactly what happens if we break the non compete.  If we broke the terms I believe it would be very cut and dry, we would owe our buyer X as lined out in the contract which they could very easily enforce in the appropriate court.  Anyone can drag out the process of enforcement (or anything legal for that matter) but at some point it's going to wind back around to the contract.

That guy sounds like a total dirtbag inkman.

No doubt a well written non compete will hold up and I am pretty sure the Sign O Rama guys has a solid one, thats not the issue tho. Its the endless attorney fees that makes it almost impossible to enforce. We are talking small businesses, and a small business that is seriously in the red already because the guy stole the work. Funny thing is this guy has been known to do this several times already and yet he always finds a sucker to fall for his crap. When i say he goes on extended vacation I mean he goes to Florida in his Yacht and travels the carib for a year. He is filthy rich and rarely works.

Sounds like your friend needs to retain the services of some hired goons "transaction facilitators" to lend their "personal touch" to the imbroglio the parties find themselves in.