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Attorney2020
Attorney2020, Attorney
Category: Business Law
Satisfied Customers: 2577
Experience:  I am a practicing attorney. I have experience in business law, bankruptcy, real estate law and estates.
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In a previous partnership I signed a contract with a service

Customer Question

In a previous partnership I signed a contract with a service provider that contained a 3 year non-compete clause. I am now serving as an executive at another company that has elected to engage in activities that would cause me to violate my non-compete. Am I required to abdicate my responsibilities at the current company to avoid breaching the non-compete clause of the old contract?
Submitted: 1 year ago.
Category: Business Law
Expert:  Attorney2020 replied 1 year ago.

I doubt the non-compete is even enforceable because it was a service provider, not even an employer. California looks at these agreements with high scrutiny and 3 years is likely not enforceable. What are the terms at issue that you believe may be breached.

I hope that helped. Please ask any follow-up questions. Please rate my answer so that I may be credited for my time. I thank you in advance for your cooperation. Thank you.

Customer: replied 1 year ago.
My current employer has decided to create a service that competes with my former serviced provider directly. Here is the clause:Non-Compete. During the term of this Agreement and for a period of
three (3) years following termination or expiration of this Agreement, Customer agrees
not to directly or indirectly, as a partner, shareholder, member, manager, independent
contractor, or consultant, be involved in, participate in, or otherwise compete with
Service Provider in providing services similar to the back-end customer services
identified in this Agreement. Because of the nature of the Customer’s business, the
Customer agrees that it shall not compete with Service Provider under this Section
During the term of this Agreement and for a period of three (3) years following
termination or expiration of this Agreement, Customer agrees not to directly or indirectly,(###) ###-####2.DOCX 3
as a partner, shareholder, member, manager, independent contractor, or consultant, be
involved in, participate in, or otherwise compete with Service Provider in providing
services similar to the back-end customer services identified in this Agreement.
Because of the nature of the Customer’s business, the Customer agrees that it shall
not compete with Service Provider under this Section anywhere within the United States
and Canada (the “Restricted Area”). Customer may perform services unrelated to those
performed by Service Provider without any restriction, and it may perform services
similar to those of the Service Provider so long as they are not within the Restricted Are
and during the agreed upon three (3) year period. If the length of time, type of activity,
geographic area, or other restrictions set forth in this Section are deemed unreasonable
in any court proceeding, the parties agree that the court may reduce such restrictions in
such a manner as it deems reasonable to protect the substantial investments of Service
Provider.
Expert:  Attorney2020 replied 1 year ago.

This term is overboard, ambiguous and likely unenforceable. There is still a risk that the company may sue to enforce this contract, but the low probability of a California court enforcing such a contract is very low.

I hope that helped. Please ask any follow-up questions. Please rate my answer so that I may be credited for my time. I thank you in advance for your cooperation. Thank you.

Customer: replied 1 year ago.
The Jurisdiction is actually UT
Expert:  Attorney2020 replied 1 year ago.

Utah takes a very simile approach as California and most courts when viewing non-compete contracts so the same analysis applies.

I hope that helped. Please ask any follow-up questions. Please rate my answer so that I may be credited for my time. I thank you in advance for your cooperation. Thank you.

Customer: replied 1 year ago.
Gave you a 5 star. Thanks for your help
Expert:  Attorney2020 replied 1 year ago.

Please rate my answer. You have not rated my answer yet. Please do so. Thanks.