Quote:
Originally Posted by Challenger
This case would probably be decided the same way in any legal jurisdiction in the country. No Compete clauses have been deemed legal by many courts as long as they are reasonable to protect the business and are not overly restrictive as to duration or covered area. The losers are very lucky that they have not been charged with a larceny charge stealing company property (names, addresses, and other customer info)
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I agree they shouldn't have taken the files out.
However, those files exist because those agents put them there. They were customer files that THEY had acquired. It was THEIR customer lists. They were taking their own information. The developer didn't give them their leads. They worked to create those leads themselves.
That's one of the problems with non-compete rules. You are required to do all the work, but if you quit, you're not allowed to take the results of all that work with you. What they -should- have done, is call any hot and warm leads, and inform them that they were going to be leaving the company and forming their own. And give the potential client the option of being assigned to a different sales agent at the Villages, or follow the agent who's leaving, to their new agency.
THAT would be the right thing to do. It would also be the right thing for the Villages to do, instead of a flat out non-compete clause for 18 months. The Villages have the monopoly on all NEW construction. No one else is ALLOWED to sell those homes. The only thing in question is resales, which are fair game for ANY real estate agency, or independent agent. ANY agent except those few who left the Villages Sales. Many of whom live in the Villages, and know the Villages better than any other outside agent. Many of whom clients would WANT to sell on their behalf, or help them buy.
And now the judge is telling those clients - sorry, you're not allowed to have this licensed real estate agent represent you in the sale or purchase of your pre-owned villages resale home.
That's where it's a problem.