Non-Compete & Non-Solicitation Litigation

Non-compete, non-solicitation, and confidentiality agreements are essential for businesses to protect their confidential information, trade secrets, and goodwill. These agreements are usually put in place to prevent employees or independent contractors from competing with your business, soliciting clients, or using or disclosing your confidential information for their own commercial or personal benefit. However, if someone breaches one of these agreements, it can have serious implications for your business, and you must act quickly to mitigate the harm caused.

A breach of a non-compete, non-solicitation, or confidentiality agreement can occur in several ways. For instance, an employee may leave your company and join a competitor, taking valuable client lists, marketing strategies, or pricing information with them. Alternatively, an independent contractor may use your trade secrets to start their own competing business. Such actions can cause irreparable harm to your business, resulting in lost revenue, lost clients, or a tarnished reputation.

If you suspect someone has breached your non-compete, non-solicitation, or confidentiality agreement, you must act quickly. The first step is to gather evidence that supports your claim. This may include emails, documents, witness statements, or other relevant information demonstrating the breach. The second step is to seek legal advice from a trusted attorney specializing in this area of law.

Examples of Breaches

There are several examples of breaches of non-compete, non-solicitation, or confidentiality agreements that businesses may encounter. Here are a few common scenarios:

1. Non-Compete Agreement Breach: An employee who has signed a non-compete agreement may leave the company and start working for a competitor in the same industry, using the confidential information they learned while working for the previous company to gain an unfair advantage.
2. Non-Solicitation Agreement Breach: A former employee may violate a non-solicitation agreement by contacting previous clients or customers of the company and soliciting their business for a competing company or their own new business.
3. Confidentiality Agreement Breach: A contractor or third-party entity that has signed a confidentiality agreement may share the company’s confidential information with a competitor or use that information for their own benefit.
4. Trade Secret Misappropriation: A former employee or third party may use the company’s trade secrets, such as formulas, processes, or designs, to create competing products or services.
5. Employee Raiding: A former employee may try to recruit current employees of the company to join their new business or a competitor, violating a non-solicitation or non-compete agreement in the process.

These are just a few examples of the many types of breaches that can occur. It’s essential to have strong non-compete, non-solicitation, and confidentiality agreements in place to protect your business from these types of breaches and to take immediate action if a breach does occur.

Seeking Injunctive Relief for Breach of Non-Compete, Non-Solicitation, or Confidentiality Agreements

One of the most effective ways to stop a breach of a non-compete, non-solicitation, or confidentiality agreement is to seek injunctive relief. An injunction is a court order that prohibits the breaching party from using or disclosing your confidential information. If the court grants an injunction, the breaching party must comply, or they may face penalties, fines, or even imprisonment.

However, obtaining an injunction is not always straightforward, and the court will consider several factors before granting one. These factors include the likelihood of success on the merits of your case, the extent of the harm caused, and the balance of the equities between the parties. At TCLG, we understand the burden of proof required to obtain an injunction, and we will work tirelessly to build a strong case on your behalf.

Protecting Your Business from Breaches with the Help of TCLG

At TCLG, we understand the urgency of protecting your business’ competitive advantages and have the expertise to help you navigate the legal complexities of a breach of a non-compete, non-solicitation, or confidentiality agreement. We will work with you to analyze the evidence, assess the extent of the harm caused, and determine the appropriate course of action.
If you suspect someone has breached one of these agreements, you must act quickly to protect your confidential information and mitigate the harm caused.

Contact us today to learn more about how we can help you protect your business