No compete clause ???? Am i screwed? - REO Property Preservation Forum
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post #1 of 15 (permalink) Old 10-29-2014, 12:20 AM Thread Starter
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No compete clause ???? Am i screwed?

Hello, so here is my situation. I signed up with a large national about 3 months before signing on with a smaller regional the process with the national took the whole 3 months and we were finally on boarded. 2 days after that we received our first work orders, in the mean time the smaller regional started sending work too ( from multiple nationals including the one we were working for) we have continued to work for both companies using the regional work as filler under the assumption that we were working for the national before the regional so there should be no issue with the no compete clause, now 3 months later and just about finishing up a 480cyd trash out the regional gets wind of this and tells me that "this is going to be an issue" and " you signed a no compete clause".....I'm not sure how any of this is going to play out in the coming days but I have a pretty bad feeling I'm screwed ......any body have any thing like this happen ?
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post #2 of 15 (permalink) Old 10-29-2014, 05:23 AM
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What state are you in?
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post #3 of 15 (permalink) Old 10-29-2014, 11:35 AM Thread Starter
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I am in Washington state
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post #4 of 15 (permalink) Old 10-29-2014, 11:54 AM
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Im no lawyer but you signed with the Nat first, then the regional. Anything done before signing the paperwork cannot be undone, I would say not to worry about any legal ramifications. But, you may loose work from regional. Conflict of interest at that point.
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post #5 of 15 (permalink) Old 10-29-2014, 01:28 PM Thread Starter
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well that's good news thanks JDRM but I am more worried loosing that check from the regional for the 480cyd and 22 vehicles we have removed
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post #6 of 15 (permalink) Old 10-29-2014, 01:54 PM
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this is why we have Lawyers.
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post #7 of 15 (permalink) Old 10-29-2014, 05:53 PM
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I would tell them that if that's the case they cannot submit your results if they have a problem...Then lien and see them in court.
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post #8 of 15 (permalink) Old 10-29-2014, 07:00 PM
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post #9 of 15 (permalink) Old 10-29-2014, 07:49 PM
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I've fought Non Competes on both sides. They are barely worth the paper they are written on. They can cost you attorney fees but that is about it. Especially in cases like this where you were already doing business with the national prior to committing with the regional.
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post #10 of 15 (permalink) Old 10-29-2014, 10:40 PM
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Non Competes are very much enforceable. If your regional had you sign a non-compete then you will need to stop working for the Nationals that you are signed up with if that Regional decides to enforce the non-compete. It's based off the amount of work that the National "May" send you in your territory that otherwise would have been sent to the Regional.

I have enforced our non-competes on employees and subs that signed with our National Companies AND for signing up with a National that serviced the same FINANCIAL institution that our company did.

In every case we won with very little legal cost. This was purely a business decision to protect our contracts with Financial Institutions and/or a National Service provider. Most territories we did not care and did not enforce the non-compete so if you are in a non-preferred area they may not care.

The other problem may be the National may be upset since you can be placed in a position to "bid against yourself" on work which violates several clauses in a simple contract.

As far as your current clean out this should be paid provided you were not the 1st & 2nd bidder.

JMO but been there done that
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