The question
Legal Query
Jurisdiction : United States of America / Florida
Hello all.
Two years ago, I purchased a Vacation Cleaning Business in
Florida ( Hereby noted in this article as "VCB").
We signed a non-compete clause during purchase from the owner (
Herein referred to as "R" ), preventing "R" from setting up any
business of the same type within 50miles of the VCB, as well as
forbidding "R" from working with any companies who had contracts
with the VCB, or from helping anyone else to do the same.
At one point, we dropped a contract (hereby known as MC) due to
increasingly poor support from the client. They had talked about
hiring on some additional couples to cover extra work whilst we
were employed, which would have halved the work we received
from the client. Now we have seen "R" working in some of the
houses under the management of MC.
We found "R's" website advertising her own business on the
internet ( Noted herein as "BoC"). We found "R"'s car with adverts
for the business parked near where we had a contracting deal ( in a
vacation complex ).
We also found "R" registering "BoC" in multiple counties around us
under different addresses. One set of contact details from her site
actually appears to be the address of the business contract we
dropped (MC). We have reason to believe that "R" is working with
the owners of MC in her new business as their names are
registered alongside "R" 's on Sunbiz.org
We sent a Cease and Desist Letter to all of the addresses we found
for the licenses ( about 4) and informed "R" of the evidence and to
please stop her activity.
"R" ( responding from the address also registered to MC)
responded by stating that her out-of-county licenses meant that she
was not breaking any laws. She also said that due to the way we
purchased the VCB (lump sum + monthly payments with interest )
that until we paid in full, she was still the total owner of the business
we bought (despite having had nothing to do with it's running since
the 1st day of purchase ).
Since then one of our close friends that we do work for and is
aware of the situation ( Referred to as "FPM" ) has seen "R" working
in houses owned by another one of our former contracting partners,
well within our area, whilst "FPM" went around to check the
properties she manages, and has informed us as well as provided
photographic evidence for us.
She (the owner of "BoC") has clearly defied the Non - Compete
clause, but If I sue her for damages or press other actions, there are
still a few gray areas :
- Do we have a good case ??
- What will be the most likely outcome? I have no substantial extra
cash for frivolous lawsuits, and want to be assured that the problem
will cease and maximum possible intervention / compensation is
acheived.
- What damages can we expect to recover from it ?? It would help if
she was , at minimum, barred from doing it again, or even if I could
get the rest of the payments struck out, since $1k a month is a
substantial sum.
Since the contract is broken, are any of these actions possible ?
It is unlikely, but would any punitive damage be approved or money
awarded due to loss of business to her ( if any can be proved ) ??
- How long will it take ?? My business is by definition constantly
moving, and I prefer to be close by to deal with last minute
problems. Summer is approaching, and may be too busy to handle
weeks of court on top of an excesive workload.
- Is there any extra hurdle I am forgetting ? Any process I can do to
help build my case further and ensure justice????
Thank you for your time with this matter. I appreciate your feedback,
as we are desperate for justice.
From the LawyerCentral forum archive. Originally posted 4 May 2011 on a legal forum that has closed. Names and contact details were removed. See the original (Internet Archive).
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