Legal Question in Business Law in Pennsylvania

Mortgage Company Non-Compete Agreement

I work at a motgage company in State College.

When I was hired I signed a brief non-compete agreement not to work at brokers within 75 miles of my current employer.

Since then I have recevied a better from another broker in Centre Hall (about 5 miles away).

I want to know if this noncompete is ligitamate, and if so what would be involved in beating it.


Asked on 4/03/03, 2:05 pm

2 Answers from Attorneys

David L. Bargeron Unemployment Help Center

Re: Mortgage Company Non-Compete Agreement

Dear Mortgage Broker:

I have assisted individuals in "beating" non-compete agreements in similar situations. Often, the key is determining whether you received a substantial benefit as a result of non-compete contract. A "substantial benefit" is something over and above merely being hired. Additionally, if you accept the new position, will your current employer suffer actual or potential harm? By way of example, if there a possibility you will take customers away from your current employer.

I offer free consultations and very reasonable fees. Please contact me at [email protected] or 610-972-6610

David L. Bargeron, Esquire

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Answered on 4/04/03, 3:10 pm

Re: Mortgage Company Non-Compete Agreement

"Under Pennsylvania law, a covenant not to compete is enforceable if it is: '(1) ancillary to the main purpose of a lawful transaction; (2) necessary to protect a party's legitimate interest; (3) supported by consideration; and (4) appropriately limited as to time and territory.' [Citation omitted.]" Vector Security, Inc., v. Stewart, 88 F. Supp. 2d 395, 399-400 (E.D. Pa. 2000).

Please feel free to contact me if you want to discuss retaining me to review your situation.

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Answered on 4/03/03, 2:57 pm

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