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Dave Kennett
Dave Kennett, Lawyer
Category: Family Law
Satisfied Customers: 27689
Experience:  25 years experience as practicing attorney
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IF a company hires a person to do a job for one of its customers,

Customer Question

IF a company hires a person to do a job for one of it's customers, is it ok for that employee to negotiate with that customer to bid the job for himself directly? There has been no non-compete agreement, but the employee has been expected to act in the best interests of the employer, which would include not deliberately doing something that would lose the customer's business to that employer.
Submitted: 7 years ago.
Category: Family Law
Expert:  Dave Kennett replied 7 years ago.

DearCustomer- This would certainly be grounds for dismissal in any employer/employee relationship as it would be a breach of fiduciary duty by the employee. It wouldn't be a violation of law in any criminal sense but if there was an employment agreement prohibiting this there could be some civil damages.


If the employee actually took business away from the employer while still in the employ of that company then there would cause for damages. To answer your question it is not "OK" to do this but, depending on the circumstances, the consequences can be different.


Dave Kennett

Customer: replied 7 years ago.
what damages could be sought when the employee did take business away from the employer by conspiring to bid it himself? Do you think an attorney would take such a case on a percentage basis??
Expert:  Dave Kennett replied 7 years ago.

I can't speak for another attorney since it would be their choice. The damages would be for the loss of the business caused by these actions. Depending on the strength of the case and the likelihood of success and amount of damages an attorney may take this on a contingency basis.



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