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How to handle disputes over non-compete agreements

On Behalf of | Jul 28, 2022 | Business Law |

When entering into a relationship with employees or other parties, a Kentucky business will benefit from employing the benefits and protection provided in a carefully constructed contract. A legally binding contract can outline the expectations and rights of each party in the relationship, as well as lower the risk for complications and disputes. A non-compete agreement is often an important aspect of an agreement between employers and employees as a way to keep certain information safe. 

A non-compete provides a business the opportunity to shield closely held information from unauthorized use. When there is a violation of a non-compete clause, your company may pursue legal recourse as a way to minimize damage and secure compensation for any losses you experienced. It may be helpful to understand how to best handle these types of disputes and when you may have grounds for a legal claim. 

Important questions to ask 

Before you initiate the legal process of pursuing a lawsuit over a breach of contract, it is helpful to first determine whether or not the cost, time and effort of litigation is the most prudent course of action for your individual situation. The following questions may help you understand what your following steps should be: 

  • Was the original non-compete agreement between the parties valid and enforceable? 
  • Is the risk of litigation worth the potential cost and complication you may encounter? 
  • Do you know how and where you should file your lawsuit? 
  • Will a cease and desist letter be a more prudent initial step? 
  • What are the specific remedies you will pursue in your claim? 

The legal process of seeking remedy over the breach of a non-compete agreement through the civil justice system is a reasonable way to address a dispute over a contract. However, these questions and consideration of other factors will ensure that you move forward with a course of action that puts your business in the best position to secure long-term success. 

What is in the interests of your business? 

How you should handle a violation of a non-compete agreement depends on the details of your individual situation, including the financial losses you experienced, the details of your original agreement and more. An assessment of your situation can help you understand what steps you should take after a breach of contract that will provide your business with the recovery and protection it needs.