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  1. #1
    Join Date
    Aug 2007
    Posts
    4

    Default Threatened Lawsuit After Taking A Job With Former Employer's Client

    Hi,
    I am also in the same situation. But I am in California.
    I resigned from my old employer about 2weeks ago and when I was working for old employer end client was XYZ. XYZ Client contacted me directly and asked me if I can work on their project for one more year. I accepted it.
    Now I am working for New company and new company gets bill paid by prefered vendor "ABC" of client XYZ.
    XYZ pays to prefered vendor ABC and ABC pays to my new employer.

    My old employer called me and told me he will sue me for 50,000$ bcos I breached his contract. Its just 2 weeks i am working for their client, Can he realy sue me for 50,000$ ?

    Here is the non solitation agreemenet i have signed with my old employer.

    Prohibition on Solicitation of Clients –
    A. You acknowledge that, because of the nature of your work for the Company, your solicitation or serving of certain Company clients after the termination of your employment inevitably would involve the unauthorized use or disclosure of Confidential Information, and impair the protectible relationships and goodwill of the Company. Accordingly, you agree that, for 1 (One) year following your departure form the Company for any reason, you will not directly or indirectly solicit, accept as a client or perform services of any type that the Company can render (“Services”), or assist others to do the same, for any person or entity: (1) for which you provided services as an employee of the Company or that received the benefits such services during 1 (One) year prior to your departure; (2) that was a client in the metropolitan area of your resident office during 1 (One) year prior to your departure; or (3) that becomes a client of the Company during the year following your departure and for which you participated in a proposal to provide services. It shall not be relevant that a client desires or prefers that someone other than the Company render services or that the client is already served by you or any person or entity with which you become associated. This is not applicable for permanent Employees and is only applicable to part time, temporary, individual consulting or by forming a partnership or corporation.

    B. Remedies – If you breach this restriction on solicitation of clients, in addition to any other legal and equitable remedies the Company may have, you agree to pay to the Company an amount equal to 30% of the gross fees paid for services rendered in violation of this provision. Such percentage shall be paid with respect to all such services rendered during a period of two years from the date such person or entity is accepted as client. You must make the payment to the Company within 30 days after such payment of fees has been made by the client.

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