Non-compete agreement in AZ (Gilbert, Page: how much, lawyer, employment) - Phoenix area - Arizona - City-Data Forum

aiwei · 02-26-2009, 10:11 AM

My husband needs some legal advice, and maybe an opinion letter drafted by a lawyer regarding his non-compete agreement he had with his old employer.

Being laid off for 4 months, my husband found a straight-commission job in the same industry. Because he had signed a non-compete agreement, he is bound for 6 months, from the day he was let go, not to sell to or even talk to the same companies he had worked with. With the depressed economy, he really wants to jump start his business by first speaking with the people he had a business relationship before. Therefore he wants to find out, through a lawyer, if this agreement is enforceable in AZ.

I am hoping to find a non-profit, free legal advice service that could read the agreement for us and draft an opinion letter. Or maybe a lawyer who would do this pro bono. I know this is a lot to ask. We have just about exhausted our savings after these months of unemployment. This new job could be our lifeline and we want to try not to drop it.

I welcome any advice you might have and you could send me a private message also.
Thanks.

observer53 · 02-26-2009, 10:43 AM

Many lawyers will offer a free initial consultation. Check the Yellow Pages for someone who practices in the business/contract field.

TednGilbertAZ · 02-26-2009, 11:39 AM

Quote:

Originally Posted by aiwei

My husband needs some legal advice, and maybe an opinion letter drafted by a lawyer regarding his non-compete agreement he had with his old employer.

Being laid off for 4 months, my husband found a straight-commission job in the same industry. Because he had signed a non-compete agreement, he is bound for 6 months, from the day he was let go, not to sell to or even talk to the same companies he had worked with. With the depressed economy, he really wants to jump start his business by first speaking with the people he had a business relationship before. Therefore he wants to find out, through a lawyer, if this agreement is enforceable in AZ.

I am hoping to find a non-profit, free legal advice service that could read the agreement for us and draft an opinion letter. Or maybe a lawyer who would do this pro bono. I know this is a lot to ask. We have just about exhausted our savings after these months of unemployment. This new job could be our lifeline and we want to try not to drop it.

I welcome any advice you might have and you could send me a private message also.
Thanks.

Aiwei... I'm not sure, but I think laying off employees NEGATES most if not all non-compete agreements entirely. Arizona is a 'right to work' state. You might want to check on that, however.

It certainly would make a good case for an attorney and with jobs so scarce to find, I'd recommend taking the job first and then later worrying about a lawsuit later... if it even comes his way. Chances are, his former company will not be able to afford the legal fees anyways if they're being hurt bi this economy to the point of laying off good employees and I highly doubt any judge would side with such a petty lawsuit these days.

observer53 · 02-26-2009, 11:46 AM

Quote:

Originally Posted by TednGilbertAZ

Aiwei... I'm not sure, but I think laying off employees NEGATES most if not all non-compete agreements entirely. Arizona is a 'right to work' state. You might want to check on that, however.

It certainly would make a good case for an attorney and with jobs so scarce to find, I'd recommend taking the job first and then later worrying about a lawsuit later... if it even comes his way. Chances are, his former company will not be able to afford the legal fees anyways if they're being hurt bi this economy to the point of laying off good employees and I highly doubt any judge would side with such a petty lawsuit these days.

It ALL depends on what his employment contract (and the noncompete clause) says.

Arizona being a "right to worK" state doesn't have anything to do with this situation. That refers to the Arizona law that a worker can't be forced to join a union in order to get or keep a job.

Some companies take non-compete clauses pretty seriously, but it's true that in this economy, things may be changing. You should not assume that it would be a "petty lawsuit" that no judge would side with, however.

For peace of mind, I would talk to someone about this first. You'll have startup costs for this business that don't need to be exacerbated by a lawsuit or a real threat of one.

AzDreamer · 02-26-2009, 12:55 PM

Many companies will look the other way when there is nothing to gain. Your husband could call his old employer to see how serious they are about the agreement.

Skywayy2001 · 02-26-2009, 12:56 PM

It's not really enforceable to prevent someone to make a living so I wouldn't even worry about it. Even if the former company did have a problem with it, would they want to go through with the expense of litigating it....I think not (it would cause more harm than good).

aiwei · 02-26-2009, 12:57 PM

To clarify: My husband was offered a commission job from a company of the same industry. His former employer is one of the big companies in the Phx area, very visible. Therefore, we assume they have the means and lawyers to take him to court, if they want to enforce this non-compete agreement.

And, thanks to all that have commented so far.

p.s. I just read the agreement (I tried, at least) and it was signed in IL and has a clause indicate all disputes would be dealt with in DuPage county , IL state or fed. court . (background info: my husband was with this firm for 2 yrs in IL and then came to AZ last May to work at the HQ here.)

observer53 · 02-27-2009, 10:34 AM

So if they did sue, it would be back in Illinois. Makes it inconvenient for you.

AzDreamer · 02-27-2009, 11:13 AM

I second the suggestion above to call a few lawyers with this question. Most will give you five minutes and after three or four calls you'll know where you stand.

Don't just call one and think that one answer is your only option. You'll be surprised at how much some lawyers won't know about this.

aiwei · 02-27-2009, 11:22 AM

Thanks, guys. Because of this, I have been doing some reading online and learned quite a bit. Seems like the only thing that is in our corner is AZ's Blue-pencil law. This contract was signed in IL, but b/c this is a AZ firm, it did include a Blue-pencil clause... so I guess it is good. We will try to speak with a few lawyers about this and see where we stand. The worst scenario is my husband not be able to have any contact with his old accts for a little over 2 months, but concentrate on getting new accts, even though it is harder to make money from firms you have no relationship with.