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If I organized an LLC while under a non-compete that prohibits it, but do not do any business, are I liable for damages?

West Palm Beach, FL |

I entered into a non-compete in Florida that prohibits forming a business entity without my employers permission - I was put on probation and was on the verge of being fired. I registered an LLC in case I was terminated - Filed 5-14-12 to begin business on 6-1-12 - I was terminated 7-5-12 and my employer found my LLC registration - i was honest with them and have done no business - Do not have a phone number or bank accountant - I believe they plan on suing me... Since I have not done any business during my time with them how liable am I?

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Attorney answers 2

Best Answer

If they sue you, what are they planning to recover? Since you have done no business, they have not been damaged. Although damages are not an element in a lawsuit on a contract, it seems kind of silly on their part. They might be awarded $1 as a token. I suspect they are jerking you around and have no intention of paying a lawyer to go to court on it. But in the words of Dennis Miller, “I could be wrong.” Don't worry about it until you see the summons.

DISCLAIMER—This answer is for informational purposes only under the AVVO system, its terms and conditions. It is not intended as specific legal advice regarding your question. The answer could be different if all the facts were known. This answer does not establish an attorney client relationship. I am admitted only in California. (Bryant) Keith Martin


This is all going to depend on the specific language of your non-compete. You will need to have legal counsel review it's exact terms.

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