Legal Question in Civil Litigation in California

Agreement's Not Competition Provision Violated by a Bank

A well known main US Bank has already widely violated an Agreement's Not Competition Provision.

They were due not to deal with any kind of financial business activity in North America other than with our Company.

We notified them the default.

As we remained astonished to read their answer:''We have misplaced the written agreement''.

Another Agreement's Provision well states about an agreed default of $10 million in case of default by the same Bank.

Thus, we intend to go ahead immediately by asking an injunction by the Court.

We would appreciate to receive a suggestion about how to better further about this issue.

As to find out the right laywer capable to represent our interests as better as possible.


Asked on 1/10/02, 3:56 pm

7 Answers from Attorneys

Larry Rothman Larry Rothman & Associates

Re: Agreement's Not Competition Provision Violated by a Bank

Just because the bank no longer has a copy of the agreement is not a defense to any action you might bring. Non-competition contracts are construed very carefully by the Court. You may be entitled to injunctive relief or even damages (if such can be proved). Our firm handles cases throughout California and if you fax me the agreement to 714 363-0229, I will be glad to review it and provide you with free consultation as you may have several options. I am concerned with the limitation in North American. www.larryrothman.com

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Answered on 1/10/02, 7:56 pm
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Agreement's Not Competition Provision Violated by a Bank

You will have to expect that your action will be aggressively defended. Anti-competition clauses are often held unenforceable. Was the agreement a part of a settlement agreement as the result of litigation? If so it may have a better chance of being upheld. Please call me directly at (619) 222-3504.

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Answered on 1/10/02, 8:51 pm
Michael Cortson Law Office of Michael D. Cortson, Esq.

Re: Agreement's Not Competition Provision Violated by a Bank

I would need to see the contract provisions before giving a reliable opinion. I have litigated such matters in the past. If you could fax me a copy of your contract I could review it. I would presume that you have complied with all of your requirements under the contract. It would be unfair to proffer an opinion without seeing all of the paperwork first. My fax is 219-255-0018 or you can email me. I am licensed in Indiana and California. I also handle international law matters.

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Answered on 1/10/02, 8:56 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Agreement's Not Competition Provision Violated by a Bank

you situation sounds too complex to answer here. I suggest having a lawyer review the agreement before deciding how to proceed.

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Answered on 1/14/02, 9:18 am

Re: Agreement's Not Competition Provision Violated by a Bank

I read the previous responses by the other attorneys to your question. They raise several important points such as the fact that the bank "lost" the agreement not being a defense and the fact that California courts construe non-compete agreements very narrowly and enforceable in only limited circumstances; and the liquidated damage provision not be a penalty or it will not be enforceable.

Basically, you have to have an attorney review all of your documentation and discuss the facts and circumstances of how the agreement was obtained, under what circumstances, what has been done by both parties since the agreement was signed, etc.

I would be happy to discuss this matter with you.

J. Caleb Donner

LEGAL WARRIORS (R)

805-494-6557

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Answered on 1/10/02, 10:06 pm
Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: Agreement's Not Competition Provision Violated by a Bank

Clearly, losing the written agreement is no defense to their violation of your agreement. I assume that your non competition provision is within the law of the jurisdiction in which the contract was made, or to be performed. Your real danger is that the liquidated provision of your agreement not be considered a penalty, but rather, a good faith attempt to liquidate damages which could not be readily or reasonably determined. You have to establish the reasonableness of the amount agreed upon, or emphasize the inability to calculate actual damages.

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Answered on 1/10/02, 4:16 pm
Mark G. Cunningham McKay, Byrne & Graham

Re: Agreement's Not Competition Provision Violated by a Bank

Your question raises a number of significant issues that need to be addressed with a lawyer. Those issues include, but are not limited to, the following:

1. Are the anti-competition and remedy provisions in the contract enforceable?

2. What would be the appropriate venue to resolve the dispute?

3. What are the available legal remedies under the circumstances? Generally, injunctions are considered extraordinary equitable relief and injunction will not be issued if there is a legal remedy (damages)that affords adequate relief.

4. Is there irreparable injury so that an injunction should issue? Generally, an application for injunctive relief stands a better chance of being granted if there is a showing of irreparable harm.

5. What are the jurisdictional and equitable defenses that may be raised by the other side?

6. Is equitable relief the best option under the circumstances?

These are all issues and considerations to be reviewed and considered under the facts of your case.

Should wish to discuss your case, please call. 213/386-6900. Best of luck.

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Answered on 1/10/02, 4:45 pm


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