Former Employer Threatens Ex-Employee Over Lost Revenue

[CS Thmopson]

Jurisdiction

California

Hello,

I recently left a position at an insurance brokerage firm and went into a different industry all together. However, I had a few of my clients that did not want to remain with the current company and asked me to assist in finding them a new broker to work with. I went ahead and did this and was offered compensation from another agency for my efforts and introducing the companies to an agency.

I have an agreement with a new company as a contractor 30 days after my employment and I did not solicit any business while I was employed. However, there were some discussions as I was supposed to introduce another employee but they never got around to making an appointment.

With that said, the companies went to another agency and now my previous employer is threatening to sue me because they feel I stole the business from them. They are seeking damages and claim that my loyalty to the company was not intact. I also did not have a signed employment agreement, so there is not a non-compete or anything.

Can someone please help me understand how they can do this?

Thank you!!

 

[Betty3]

Anyone can sue anyone else at any time but that doesn't mean they will win. If you are sued, you defend yourself. If there was no signed agreement such as a non-compete with your former employer that should work in your favor.

 

[ElleMD]

If you actively assisted your former company's clients to leave and go elsewhere, whether you signed agreement or not, you could be held liable for interfering with the company's business or misuse of trade secrets. I would absolutely get a lawyer. It was a very bad idea to actively do anything which would hurt your former employer. If clients wanted to go elsewhere, that is on them, but by actively assisting the process and accepting employment/compensation with an agency in order to facilitate that process, it is going to be very difficult to argue that you had nothing to do with the loss of clients.