Posted by SammiTN on 9/27/05 5:02pm
Msg #67655

Question about Non Compete Clause in IC Agreements SS

I have been in the legal field for over15+ years as a Notary Public (Paralegal/Legal Assistant). I've worked for a local Title Company in the past and have now decided to go into business for myself. I've taken the course and have taken the certification test and am now certified. Even though I had had previous experience, I didn't want to start to commit to Signing Services until I updated my knowledge. So, my question and concern is about the NON COMPETE Clauses that SOME of the Signing Services etc., have in their Ind. Contractors agreement. Obviously, I know that if I get a job through their service, I would be working for them and would never go behind their backs to get around the Signing Companies fees. But if I have established a relationship with one of their customer's previously or if I have worked for that LENDER/TITLE COMPANY through another Service or if the Lender/Title Company contacts me directly through knowledge of my service by other means, how can expect us to fulfill the non-compete clause. I hesitate signing with those companies for that very purpose.

I would appreciate very much any input or past experience any of you have had in regard to the NON COMPETE Clauses that some services require us to sign. How do you handle that?

Thanks in advance for the advice.

Reply by Charles_CA on 9/27/05 5:27pm
Msg #67663

that is one reason I assiduously avoid signing contracts with SS, that and the non-disclosure clause. I suspect that manhy o the posts here regarding payment are in violation fo those clauses. I guess depending on where you are located and the amount of competition you have would dictate how cavalier you can be with contracts.

Reply by Roger_OH on 9/27/05 7:17pm
Msg #67677

Rule of thumb...

The SA can't know who the SS might have agreements with, I don't worry about it.

Basically, you don't solicit a TC that has worked with you thru an SS; however, if a TC chooses to contact YOU directly, then that's between YOU and the TC.

Reply by BarbaraL_CA on 9/27/05 9:39pm
Msg #67703

Article from the American Bar Assoc.

I am not an attorney and not giving advice. Here is an excerpt from an article by the American Bar Assoc. - The entire article can be read at: http://www.abanet.org/buslaw/blt/2004-01-02/robben.shtml


"Because noncompete agreements serve to limit a person’s right to pursue a livelihood, they are not favored in the law. For example, California law generally precludes that state’s courts from enforcing any noncompete agreement, even if the agreement calls for the application of another state’s laws. In California, employers can be subject to legal liability if they attempt to enforce a noncompete agreement. They may also be deemed to have wrongfully terminated an employee, even an at-will employee, if the termination was in retaliation for refusing to sign a noncompete agreement.

Most states, while viewing these agreements with varying degrees of disfavor, do not take such an extreme approach. Many states will enforce an agreement if it is "reasonable."

Reply by Kevin Ahern on 9/28/05 5:42am
Msg #67723

Non compete clauses(aka restrictive covenants) are very enforceable in Connecticut. However, the Courts narowly construe the clause to determine whether the clause is reasonable in terms of the length of time of the restriction, the geographical area of the restriction and the scope of the activity that is to be restricted.