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  1. #1
    Join Date
    May 2014
    Posts
    1

    Default When Will Starting a Company Violate a Non-Compete Agreement

    My question involves labor and employment law for the state of: Wyoming

    My husband recently went to work for a franchise home inspection business with the intent that he would learn the trade and then purchase the business from the current owner. To date no written contract has been drawn up.

    Part of the training process required my husband to sign a no compete contract when he went to corporate for a week long training.

    Since then the current owner has decided not to sell the business to my husband. Can my husband go start his own inspection business?

    here is the contract:

    Employee shall not, either directly or indirectly, for himself/herself or on behalf of, or in conjunction with, any other person, persons, partnership or corporation own, maintain, engage in, participate or have any interest in the operation of any other inspection service in any way similar to ####.

    The above provisions relating to interests in other inspection services shall not apply to ownership by Employees of outstanding securities of any corporation whose securities are publicly held and traded, provided that said securities are held by Employee for investment purposes only and that Employee’s total holdings do not constitute more than five percent (5%) of the outstanding securities of said corporation.

    Employee further covenants that during the term of this agreement or any extension or renewals thereof, and for a period of two (2) years thereafter, regardless of the cause of termination, Employee shall not divert or attempt to divert any business of, or any customers of ### to any other competitive establishment, by direct or indirect inducement or otherwise.

    Employee shall not, during the term of this agreement or after its termination or non-renewal, communicate or divulge to any other person, persons, partnership, or corporation any information or knowledge concerning the methods of operation, promotion, or sales used by #### nor shall Employee disclose or divulge in whole or in part, any trade secrets of ####.

    Employee acknowledges that a violation of any covenant in the above paragraphs will cause irreparable damage to ####, the exact amount of which may not be subject to reasonable or accurate ascertainment, and therefore, Employee does hereby consent that in the event of such violation NPI shall as a matter of right be entitled to injunctive relief to restrain Employee, or anyone acting for or on behalf of Employee, from violating said covenants.

    Employee represents and acknowledges that in the event of the termination of this Agreement for whatever cause, his/her experience and capabilities are such that he/she can obtain employment in business engaged in other lines or of a different nature than that of the operation of an inspection service and that enforcement of a remedy by way of injunction will not prevent him/her from earning a livelihood.

    In the event that ### brings suit to enforce any provision hereof, NPI shall be entitled to receive, in addition to any relief or remedy granted the cost of bringing such suit, including reasonable attorney’s fees.


    Please advise

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: When Will Starting a Compnay Violate a Non-Compete Agreement

    When your husband showed this agreement to a Wyoming attorney, what did that attorney say?

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