Many businesses rely on non-compete agreements to protect their interests. These types of agreements are often included in employment contracts or severance agreements, although they may also be used in partnership agreements or other types of business contracts. The purpose of a non-compete agreement is to make sure a person who has inside information about a company will not use this information to engage in unfair competition, such as by starting their own company or working for a competitor. If a company finds that a person who was subject to a non-compete agreement violated its terms, it may need to determine whether to pursue business litigation. By understanding the remedies that may be ordered by a court to address the violation of a non-compete agreement, a business can seek the proper forms of relief during litigation.

Options for Addressing Non-Compete Agreement Violations

Typically, non-compete agreements will restrict a person from engaging in certain activities, and these restrictions will usually apply within a certain geographic area and for a limited time period. During litigation, if a company can show that a former employee or another party violated the terms of a non-compete agreement, it may ask the court to take certain actions, including:

Injunctive relief - A person may be required to follow the terms of a non-compete agreement and cease any and all actions that violate the agreement’s terms. This may mean that they will be required to stop working for a competitor or move to a different position that is not in direct competition with their former employer. A person who has started their own business may be required to cease certain activities, such as contacting their former employer’s clients or providing services that directly compete with the company where they used to work.

There are many situations where businesses may become involved in legal disputes. These disputes may involve claims that a business is owed money by another person or company, that another organization has used trade secrets or proprietary information to engage in unfair competition, that the business or another party has failed to follow the terms of a contract, or that a business has engaged in discrimination or other unfair treatment of employees. While disputes may be resolved through business litigation, the process of filing and answering a lawsuit and conducting a trial in court can be very lengthy and expensive. In some cases, it may be more beneficial for both parties to use other methods to resolve their disputes, including mediation or arbitration.

Mediation Vs. Arbitration

Resolving disputes outside of formal legal proceedings in court can often be a more effective solution. In addition to saving time and money, the solutions reached using alternative dispute resolution may encourage cooperation between the parties, allowing them both to move forward successfully and continue working together in some cases. The specific procedures followed during alternative dispute resolution will depend on how well the parties will be able to work together and the amount of assistance they will need to resolve the outstanding issues.

Mediation may be the preferred option if the parties are willing to cooperate and compromise. In these cases, the parties will work with a neutral mediator who will help them discuss their issues and determine solutions that they will both be satisfied with. The mediator will not make any decisions, but they may offer suggestions and encourage each party to make concessions. The goal will be to create a workable settlement that will meet each party’s needs going forward. The settlement will not be binding unless both parties are in full agreement on how all outstanding issues will be resolved.

There are a variety of situations where a business may use non-disclosure agreements to protect sensitive information. These agreements may be included in multiple types of contracts, and they may prevent the release of trade secrets or other information that could cause a company to experience financial losses. For companies that are looking to create non-disclosure agreements or address violations of restrictive covenants, it is important to understand the legal requirements these agreements will need to meet and the types of restrictions they can put in place.

Terms of Non-Disclosure Agreements

A non-disclosure agreement (also known as an NDA) will include a variety of provisions, and these may include:

• Identification of the parties - As with any contract, an NDA will need to specify the people or companies that will be bound by the agreement. A non-disclosure agreement will usually involve a disclosing party that provides confidential information and a receiving party who will have access to the information being protected. Many non-disclosure agreements are unilateral, meaning that one party will be seeking protections by placing restrictions on the other party. However, other types of agreements may be mutual, and the restrictions may apply to both parties.
• Identification of confidential information - An agreement should fully detail the types of information that will be protected, such as company records, intellectual property, trade secrets and proprietary processes, electronic communications, or details about a business and its operations that have been discussed in meetings.
• Scope of confidentiality - An NDA may detail the restrictions that will apply to confidential information. It may prevent a party from releasing information to others, and it may also place restrictions on how a person can use information for their own benefit.
• Exceptions to confidentiality - Certain types of exclusions will usually apply to ensure that the restrictions placed on a person are not unfair or unreasonable. Generally, confidentiality restrictions will not apply to information that a person knew prior to signing the agreement, information that is publicly available, or information that a person received independently, such as through disclosure by another party that was not subject to a confidentiality agreement.
• Length of the agreement - Confidentiality restrictions can generally only be in place for a limited amount of time that is necessary to protect a party’s legitimate business interests. In Florida, non-disclosure agreements that apply to former employees or contractors can generally last from six months to two years, while NDAs involving former distributors, franchisees, or licensees can generally last from one to three years.

Contact Our Broward County Non-Disclosure Agreement Attorney

If you need to create non-disclosure agreements that will protect your business, or if you are looking to enforce the terms of an NDA or address claims that you have violated an agreement, The Elliot Legal Group, P.A. can provide you with experienced legal help. Contact our Pompano Beach NDA violation lawyer at 754-332-2101 to arrange a consultation.

Businesses may become involved in multiple types of disputes with other parties, and in some cases, these disputes may need to be resolved through the legal system. By filing a civil lawsuit against an organization or individual, a business may seek to recover financial losses, or it may ask that the other party be required to cease certain activities or fulfill their legal obligations. For businesses that are planning to take legal action against someone else or need to respond to a lawsuit filed against them, it is important to understand the stages of the business litigation process.

Steps Followed in a Civil Lawsuit Involving a Business

A legal dispute that is handled in civil court will usually proceed as follows:

• Demand letter - Prior to initiating a lawsuit, a person or business will usually send a letter to the other party asking them to take certain actions. For example, a company may request that money owed by another party be paid according to the terms of a contractual agreement. This will give the other party the opportunity to resolve the issue before legal action is taken, and the parties may be able to negotiate an agreement at this stage.
• Complaint, summons, and response - If the other party does not answer the demand letter, or if the parties cannot come to an agreement on how to resolve their dispute, the plaintiff may initiate a lawsuit by filing a complaint in court. This complaint and a summons to appear in court will be served to the defendant. The defendant may also file a response to the complaint, and in some cases, they may choose to file a counter-claim against the plaintiff.
• Discovery - At this stage of the process, the parties will gather information pertaining to the case. They may do so through interrogatories or requests for information from each other. Subpoenas may also be used to obtain financial records or other information, and depositions may be performed in which either party may answer questions after being placed under oath.
• Negotiations or alternative dispute resolution - Before a trial begins, the parties may be able to negotiate a settlement and resolve the case. They may also choose or be required to use other methods of resolving their dispute, such as mediation or arbitration.
• Trial - If other forms of dispute resolution fail, the parties will argue their case in the courtroom before a jury. Each side will make arguments, present evidence, and call witnesses. At the conclusion of the trial, the jury will rule in favor of the plaintiff or defendant, and they will determine the actions that the losing party will be required to take, such as paying a monetary judgment.

Contact Our Fort Lauderdale Business Litigation Attorney

At The Elliot Legal Group, P.A., we provide representation to plaintiffs and defendants who are involved in business litigation. We can help you determine the best steps to take to protect your rights and interests, and we will work to help you negotiate a settlement or argue on your behalf in the courtroom. Contact our Hollywood business litigation lawyers at 754-332-2101 to get legal help with business disputes.

Businesses use contracts for a variety of purposes, and these agreements can ensure that both parties fully understand their rights and requirements while also detailing how matters will be handled if one party fails to follow the terms of the agreement. In a previous blog, we looked at the elements needed to make sure a contract is valid and enforceable. As a follow-up, we wanted to discuss the terms that may be included in a contract to protect the parties and ensure that they will meet their obligations.

Types of Clauses That May Be Used in Business Contracts

A contract will detail the rights and duties that apply to each party, and it will also specify relevant dates, such as when work will be completed or products will be delivered. It will also include information about payment, including the amount that will be paid and the methods and dates of payments. In addition to this information, the parties may include a number of other clauses that address issues such as:

• Severability - These clauses will ensure that a contract will be enforceable even if certain terms are found to be invalid. Without this type of clause, if one provision of the contract is found to be unenforceable, the entire contract may be invalidated.

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