Breach of Contract, Non-Disclosure Agreement

[matvlaw]

My question involves business law in the state of: Georgia

As an independent consultant (IC) using 'X' LLC had signed a NDA with 'Z' LLC. Z LLC didn't want to work with me. However, was providing my service to 'B' LLC. Again, representing for 'Z'. So, I'd informed 'B' of this sudden change in contract and they agreed to work with me directly. However, I signed a contract with 'B' using a new LLC - 'N'.

'Z' is filing lawsuit stating that X has breached the contract. Any validity to this ?

[Bernie444]

It is rarely a defense if you are allegedly competing or disclosing information through another entity. Most NDA’s are broadly written to apply for any business entity of which you’re a member, whether as agent, representative, officer, director, shareholder, etc. Especially if you are the sole director or shareholder of “N”. As the theory goes, you could defeat such an agreement simply by forming a new corporation or LLC. Check your agreement to see if it is broadly worded, as most are.