Legal Watch: Protect your Accounts

Examining the value of restrictive covenants in business and employee contracts


Litigation to enforce restrictive covenants or unfair competition may be more costly than other lawsuits because you must generally seek an immediate injunction to stop former employees and their new employers from soliciting your accounts or using trade secrets. Lawsuits seeking injunctions must be filed immediately and are generally prosecuted on a fast track. It is like cramming a year’s worth of litigation into a few weeks.

Litigation is an expensive and inefficient way to protect your accounts. The question is: can you afford to ignore unfair competition?

 

 

Eric Pritchard co-chairs the electronic security group of Kleinbard Bell & Brecker LLP. Pritchard focuses his practice on the electronic security industry with an emphasis on acquisitions. This column does not constitute legal advice; contact an attorney with specific questions.