1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

A Primer on Preparing for Non-Compete Litigation: Part 4 and the Final in a Series

Fourth Step:

This is the final installment in a four part series on this topic.

Once your attorney has met with you to discuss the strength or weakness of the written and oral evidence, it is time to make an informed decision about whether, and in what form, to take action against the competing party. Although it may seem like a foregone conclusion that you take prompt legal action against a former employee acting in violation of his or her contract, your attorney should advise you to avoid a knee jerk reaction. Like any other business decision, it’s advisable that you weigh the probable costs against the benefits of taking legal action. Some companies have made a policy decision that, no matter the cost or the circumstance, they will pursue judicial relief against such an employee. This is an acceptable option, but one that, frankly, most companies can ill-afford to pursue. This type of litigation is “front end loaded”, meaning that it costs more than the typical lawsuit for damages by its very nature. A step short of this approach, now that you have your evidentiary ducks in a row, is to at least send the offender a thoughtfully worded demand letter that sets out in broad strokes what you know about the former employee’s activities, and what the consequences may be to him if such actions do not cease or are modified to a level you can live with. We recommend that you decide ahead of time just how far you are willing to go beyond this point, and how much money you are willing to spend, to secure compliance. If you don’t have what it takes to see it through, don’t go farther than the letter. Cases such as this can quickly get a life of their own, and once you become invested in the process, it is very hard to extricate yourself from the “tar baby” without looking somewhat foolish. The result, in the event that occurs, could be just the opposite of what you wanted to do: establish a firm, no-nonsense reputation that acts as a deterrent to unfair competition. Above all, let your attorney guide you through the pitfalls, both before and after you make the decision regarding what steps to take. He has been down this road before, which has land mines buried along the way. He can help you do an astute evaluation of the risks and benefits involved in the litigation process.

That’s it for this series on Non-Compete Litigation. Thanks for joining us, and come back for more incisive legal guidance.

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

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5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297