Non-Compete Agreements

Non-Compete Agreements

By: Martin M. Shenkman, CPA, MBA, JD

In a recent New Jersey case, the court upheld part of a non-compete agreement against an accountant. The accountant terminated his relationship with a firm and opened a competing shop. The firm then sued the ex-employee for violation of a non-solicitation agreement. The court found that the firm had lost compliance business because of the competition and that the damages were foreseeable. However, the court only found that damages should be awarded for one year, not three. Moral: Shoemakers too often have barefoot children. Professionals should heed the advice they give their clients and get their documents in order. It may be a good idea to have all terms regarding what happens after you leave the job, before the situation arises. That way if the situation does come up, both you and your employer will know your rights and what you can and cannot do to each other. Totaro, Duffy, Cannova & Co. LLC v. Lane, Middleton & Co., LLC, 2007 N.J. Lexis 587 (N.J. Supreme 2007).

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