Legal Question in Business Law in Ohio

8 months ago, I decided to start my own business. So, I began the process of forming an LLC and getting open with vendors. 3 weeks ago, my ex-boss found out that I was planning on going into business for myself and terminated my employment. This caused me to begin doing business. I have never signed a non-compete agreement. Also, I didn't take any company equipment, private client lists, etc.... The first question that my the attorney that assisted me in setting up my LLC asked was if I signed a non-compete, and the answer was no. Am I in violation of any other laws? I was told numerous times that I should be in the clear based on the theme of free enterprise. Is this accurate?


Asked on 2/02/11, 8:18 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say this. Non-competes to be enforceable must be (a) signed; (b) reasonable in time; and (c) reasonable in geographic scope. They are strictly construed by the courts as they are viewed as restraints of trade, etc. Taking proprietary information is an entirely different issue. Besides customer lists, it may include other things like methods of doing business, etc. But these must be actual "trade secrets" and the employer must take reasonable steps to ensure secrecy. Consult with a good intellectual property or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 2/09/11, 1:00 pm


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