Longmont, CO asked in Contracts for California

Q: Did my client commit "Tortious Interference with a Contract for Prospective Economic Advantage"

My former client (of 16 years) pursued 5 of my 6 subcontractors until they terminated their contract with my company and went to work for my client. At first, my subcontractors were concerned that the "non compete clause" in their contract with me would prevent them from working for my client, so (unbeknown to me) my client had their lawyer talk to my subcontractors who assured them that "non compete" does not hold up in California (the venue for the subcontracting agreement). My subcontractors terminated their contracts w/me, then signed contracts (to provide same services) with my client, then my client terminated my services. Question: can I pursue my former client for "Tortious Interference with a Contract for Prospective Economic Advantage?" I had no contract with the client that addressed "poaching," however, the client a) knew I had contracts w/the subcontractors b) knew I depended on them for other client work c) wanted to me out of loop to save money. My company collapsed.

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1 Lawyer Answer
Robert P. Cogan
Robert P. Cogan pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • San Diego, CA
  • Licensed in California

A: Based on what is stated here, there might be a claim. More facts need to be examined. California "non-complete" restrictions are widely misunderstood. Under California Supreme Court decisions, there are facts under which an agreement having an obligation restricting competition can hold up. You can consult an attorney who provides a no-obligation initial consultation.

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