Can we sue if we have a non competitive law and good will on our contract and they are still practicing in Texas?

Asked over 1 year ago - Edinburg, TX

I would like to see if we have a case for anything with this guy. We bought a branch office off him and kept same name just added "of Texas, LLC" incorporated it and bought a logo for it. Now he is using same name & stamping reports just added "Company-TX" on his reports? He is no longer part of our corporation but people still think he is. We have paid him off completely and got a letter from him stating he is not stamping other peoples work, yet we just got proof. He had this name first but told us to use it when we bought the branch office.

Additional information

I'm not sure how much we have to work with. He is benefitting from our good reputation and helping others who are not certified do work in our area. When they see the stamp, everything is ok since he still owns a Company in Michigan. Everyone who works in this field should be a certified technician however the technician who performed the work is not certified, nor does he work under the company that certified his work.

Attorney answers (4)

  1. Brian Heath Crockett


    Contributor Level 16


    Lawyer agrees

    Answered . It sounds like you have a pretty good case. However, the non-compete agreement will control. You may be entiled to recover any profits he has made since the non-compete agreement as well as attorneys fees. It is not uncommon to handle these cases on a contingency fee. If you have any additional questions please do not hesitate to ask.

    Know YOUR Rights. Take Action Now. CALL 855-648-4695. Legal disclaimer:This message does not constitute legal... more
  2. William Fulton Broemer

    Contributor Level 14


    Lawyer agrees

    Answered . It's difficult to tell, from the recitation above, if you have an actual contract for sale of the business (which includes the purchase of the rights to the name and/or a non-compete clause), or if you just have a verbal agreement under which the seller simply "told" you to use the name.

    I strongly encourage you to consult an experienced business/corporate attorney to go over the underlying transaction and any written contractual agreements. If your business is being harmed by the seller's conduct, getting the right legal advice is worth the money.

    Good luck.

    Your question has been answered as a courtesy. This is not paid legal advice. Nothing in this communication is... more
  3. Rixon Charles Rafter III

    Contributor Level 20


    Lawyers agree

    Answered . I found your post a bit confusing--near as I can tell, you have a non-compete clause as part of a contractual agreement you made with an employee. The employee left the company and set up shop somewhere (Texas or Michigan, can't tell for sure) and is using a similar logo and you believe is operating without certification (whether certification is required by law in your state... can't tell from the post).

    I think you would benefit from sitting down with an attorney and having that attorney review your NCA--much will turn on the very specific language of that NCA.

    NOT LEGAL ADVICE. FOR EDUCATION AND INFORMATION ONLY. Mr. Rafter is licensed to practice in the Commonwealth of... more
  4. Robbyn P. Wysocki

    Contributor Level 4

    Answered . I also would strongly advise you to see a lawyer. While this should have been dealt with in the purchase documents, there are other options available when someone is using a trade name that is similar to yours. If you'd like us to assist you with this matter, please call 972-702-6061, or email me at

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