Legal Question in Business Law in Arizona

contacting past clients

i would like to contact my past clients for my new business venture that i acquired from working for a previous company. i did not sign a noncompete or nda agreement. do they have any power to restrict me from using this information.


Asked on 7/06/09, 3:47 pm

3 Answers from Attorneys

Donald Scher Donald T. Scher & Associates, P.C.

Re: contacting past clients

Even though you did not sign a non-competition agreement, the previous company's customer list may be protected under the law. More information is required to answer your question.

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Answered on 7/06/09, 4:25 pm
Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

Re: contacting past clients

Cannot answer question exactly on the limited facts. Also not clear whether (i) you obtained the contacts from your past employer because they were clients of that company, (ii) you learned the idea for your new business from your employer or (iii)you learned inside information you could use in new business, or (iv) none of these. Absent a non-compete agreement, which usually includes confidentiality protection, etc. the key fact question is whether you would be using your former employer's "trade secrets" to engage in "unfair competition," i.e. using own "ammo" against them. Trade secrets are protected by statutes and case law and generally are the proprietary stuff the company uses to succeed, e.g. costs of production, marketing strategies, product development, expansion plans, etc. If it is only the contacts you learned while working for the co, and not secret plans, and your idea is not competitive with the employer (e.g. they make widgets and you want to sell ice cream) then you are probably OK. Their info, including client list, for same kind of business, is closer question. Technically, you have the right to contact to sell, and if you can prove prior knowledge or public domain knowledge, then not a trade secret, but these are issues you might have to litigate, which means attorneys fees. There are other downside risks as well. Need to lay out. Contact us for appointment if you would like to discuss further.

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Answered on 7/06/09, 6:34 pm
Thomas Schober Schober Schober & Mitchell, S.C.

Re: contacting past clients

I don't think there is much an employer can do is you contact your prior customers just because you remember who they are. But if you assist yourself in any way by using information taken from your prior employer, such as customer lists, you could be in serious trouble. Likewise, if you spent any time while still employed telling your contacts that you may be leaving and starting anew, this could pose a serious problem. Good luck!

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Answered on 7/07/09, 9:59 am


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