chet
Footballguy
My friend owns a PE company and has a number of portfolio companies that he owns outright. I was talking to him today and he mentioned a situation at one of them where last week, a key employee tendered his resignation for a local competitor. The employee had a 5-year non-compete clause that specifically named his new company as a restricted from employing him.
My friend immediately sued the employee and feels that the court will enforce the non-compete albeit for a shorter term. He also found the names of the salespeople and engineers at the competitor and made all of them offers at 15-20% above market. Opposing counsel called his attorney and asked for a moratorium on recruiting each other's staff and he told him to pound sand.
I am pretty sure his remaining employees will think twice before violating their non-competes and his competitors will be similarly careful.
My friend immediately sued the employee and feels that the court will enforce the non-compete albeit for a shorter term. He also found the names of the salespeople and engineers at the competitor and made all of them offers at 15-20% above market. Opposing counsel called his attorney and asked for a moratorium on recruiting each other's staff and he told him to pound sand.
I am pretty sure his remaining employees will think twice before violating their non-competes and his competitors will be similarly careful.