Angry Ex-Employer

[GeorgiaAgent]

I just got a call from a former co-worker, giving me the heads up about some issues coming from the agency owner (I resigned from my postion last week). Sounds like she is pretty angry about my departure and "opening an investigation" on my leaving the business.

I believe I have done everything properly......I do not have any company documents / information and I have not written any business conflicting with my non-compete contract etc.

Is there anything else to be concerned with? Anything sneaking they can pull to interfere with my business?

I will be talking to my lawyer (who set up the incorporation) today, I guess I could open a liability suit if she interferes with my business?

 

[LGilmore]

They can always mess with you. In my case it was put a letter in my securities file aledging illegal practices. When caught, they simply said "our bad"(we misread a line in "our" agent's contract. yea sure. ) and corrected it. It took hiring a lawyer and sending them a letter and incurring a cost. It seems as if it was the common practice and MO.

Always check your license and with any government entity incharge of overseeing your conduct in the market.

This was with one of the cornerstone carriers in the biz.

 

[InsuranceRus]

Thats exactly why I pay $25 a month to Pre-paid legal. I have had them write letters for me left and right. You would be surprised how fast people get things done when they receive a letter from "your attorney." I would suggest signing up with pre-paid legal and asking for their professional advice.

 

[IndyAgentIDTMY]

I just got a call from a former co-worker, giving me the heads up about some issues coming from the agency owner (I resigned from my postion last week). Sounds like she is pretty angry about my departure and "opening an investigation" on my leaving the business.

I believe I have done everything properly......I do not have any company documents / information and I have not written any business conflicting with my non-compete contract etc.

Is there anything else to be concerned with? Anything sneaking they can pull to interfere with my business?

I will be talking to my lawyer (who set up the incorporation) today, I guess I could open a liability suit if she interferes with my business?

It really depends upon the conditions of your non-compete and the laws in your state.

I encountered a similar situation when initially left the insurance company where I started in this business. At that time I gave my contract to a poker buddy who was an Attorney and he reviewed it for me. Fortunately, because of how it was worded and the laws in Indiana, the non-compete I had was essentially not enforceable. He then wrote a pleasant "the non-compete is worthless so leave my client alone" letter to them on my behalf and that's the last we ever heard from them about the situation.

That being said, these things can and are often enforceable. A friend of mine is a commercial real estate agent and left one firm to go to another. His former boss sued him for breach of the non-compete. I guess his contract was pretty cleverly worded. The main issue is that it stipulated that he could not work in the Indianapolis region for any competitor for at least 1 year after leaving. In this case, after a few depositions and as legals fees began to mount, his Attorney advised him to end it and settle with the former boss for about $25k!

Regardless, I strongly encourage you to be proactive here and give your Attorney a heads-up, have him review your non-compete now so that you can know where you stand if your former employer decides to come after you in court.

 

[somarco]

It really doesn't matter what your non-compete says. They can sue with very little to go on. If they do, you have no choice but to respond.

Talk to your attorney if it makes you feel better, but I see no reason at this point to initiate anything.

If they sue, expect them to send a discovery letter requiring you to turn over all documents, notes, files, etc that can in any way relate to business you did while in their employ.

Fighting them can take months and several thousand dollars, not to mention taking time away from your new business.

Just because a non-compete may be deemed unenforceable does not mean they cannot make a case and make your life miserable for the next year or so.

All that is required on their part is the suspicion that you have done something wrong and they can file suit. It is then up to you to prove you are innocent.

Civil cases are not like criminal cases where you are presumed innocent and the prosecutor must prove beyond a shadow of a doubt that you are guilty. The burden of proof in civil matter is much less strict and you are presumed to be guilty until you can prove your innocence.

What a country.

 

[GeorgiaAgent]

I don't have a problem waiting one year before talking to my previous clients.....

I have had an attorney look over the documents and he says it may not be enforceable, but I plan to stick with what I agreed on (no soliciting clients with the former agency).

I guess I don't need to stress over anything....

Thanks for the help everyone.

 

[kimari01]

The non-compete says that you cannot solicit the old agencies business. What if that customer comes to you and tells you they're leaving? Is that violating the clause? How do you word it to cover you as the agency owner?

 

[SportsNut]

The non-compete says that you cannot solicit the old agencies business. What if that customer comes to you and tells you they're leaving? Is that violating the clause? How do you word it to cover you as the agency owner?

A one year non-compete means one year no contact with customers... even if they BEG YOU to write their ins... no can do w/o violating the contract. Of course this will vary widely from state to state, based on how they enforce non-competes...

Bottom line, why open the hornets nest...? There are plenty of folks out there that need ins; just go find em. Problem solved.

 

[arnguy]

Thats exactly why I pay $25 a month to Pre-paid legal. I have had them write letters for me left and right. You would be surprised how fast people get things done when they receive a letter from "your attorney." I would suggest signing up with pre-paid legal and asking for their professional advice.

You mean to say that those scarry (sic) letters that Pre-Paid Legal refers to in his posts really do work?

 

[hlink20]

I just got a call from a former co-worker, giving me the heads up about some issues coming from the agency owner (I resigned from my postion last week). Sounds like she is pretty angry about my departure and "opening an investigation" on my leaving the business.

I believe I have done everything properly......I do not have any company documents / information and I have not written any business conflicting with my non-compete contract etc.

Is there anything else to be concerned with? Anything sneaking they can pull to interfere with my business?

I will be talking to my lawyer (who set up the incorporation) today, I guess I could open a liability suit if she interferes with my business?

The first thing to do is to not over react. Right now all you have is second or third hand information. If you were a top performer then the principal will be upset. However, let things cool down. At this point there is nothing really to react to, correct?