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I am sorry to hear about this situation. In these kinds of cases, a Court would read the release based on the following subjective factors:
-what it believes the intended meaning to have been,
-the common translation of the verbiage, and
-the common language in the industry.
If Y wanted to limit the release to X only, then the letter would have (arguably) said that the release is conditional on Kyle working for X only. However, the release is general. Thus arguably, it simply RELEASES the individual from the non-compete all together.
The problem is saying it does not make it so. One has two choices here:
-simply continue working, and hope that Y will simply give up. If they sue, then one can argue that the waiver constitutes a FULL release and the court will make a determination; or
-not wait and file a DECLARATORY JUDGMENT, asking the Court to decide what the release means NOW, without waiting for them to sue. The problem is that this can take a few months just to get to the Court after filing.
Perhaps one may wish to ask their new company's attorney to send a letter stating that the release is being interpreted as the release being complete, and that any action by Y would be immediately rebuked and attorney fees may be asked. Or one's own attorney can write such a letter, as well. Hopefully this would be enough to have Y simply back off without litigation being needed.
Another important factor: an ambiguous clause is often interpreted against the draftor. As such, this gives someone in Kyle's position an advantage in the court's interpretation of the clause.
I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.