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Jessica
Consultant
ToLawyer, Expert
Hi, my name is***** would be happy to assist you. Before we begin, please note that this discussion is for providing general information only, it is not detailed or necessary specific legal advice, and it is only for the purpose of helping you understand the nature of your situation from a legal standpoint and to discuss options. You should engage a lawyer/paralegal in your local jurisdiction if you wish to take any legal action going forward.
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ToLawyer, Expert
A non-compete is difficult to enforce and must be reasonable. What is the time and distance of the non-compete? It should be worded something along the lines of "you shall not offer services that are in direct competition with the company for the next ___ months/years within _____distance (kms/province-wide/country wide)
ToLawyer, Expert
The more onus the non-compete, the less likely it will be enforced. So the above question is really important.
ToLawyer, Expert
In addition, is there a non-solicitation in your contract? i.e., you cannot solicit any clients of Frenzr for xyz amount of time.
ToLawyer, Expert
Hmm, I am on the web platform so I see whatever you text regardless. So, whatever is more convenient for you I suppose.
ToLawyer, Expert
Hmm. Well here is the thing, you are in direct violation of your non-compete. But I am not sure how enforceable that non-compete actually is. You are not using their clout to advertise your services nor were they using yours. 1 year of no work is financially devastating for you whereas there would be minimal effect on them. Finally, the non-solicitation clause should already be sufficient to protect their interests.
ToLawyer, Expert
Unfortunately, only the courts can make a determination on this though, and the question is whether you are willing to risk it, ignore them, and continue doing what you are doing.
ToLawyer, Expert
Did a lawyer send that to you or is it an employee? Are you soliciting their clients or did you simply "put yourself out there" and see who comes your way?
ToLawyer, Expert
Well, the worst-case scenario is that they will sue you for breach of the non-compete and seek damages for the money they have lost due to your competitive behaviour. Basically the client they COULD have gotten but for you taking them away.
ToLawyer, Expert
Sure, the non-solicitation and non-compete are two sides of the same coin. Non-solicitation stops internal talent and clients from being taken away, where as non-compete stops potential business from taken away.
ToLawyer, Expert
Sometimes a judge will determine that a non-solicitation already protects the business enough, and invalidates the entirety of the non-compete.
ToLawyer, Expert
I believe so, unfortunately, I am a web user like yourself, I don't quite know what happens to the question after it is marked as completed.
ToLawyer, Expert
You are welcome, good luck.