# Stupid me-Did not have a Non-Compete/non-disclosure



## KirbyCo (Aug 29, 2008)

This is my first post and I am feeling a bit timid to spill my guts. I am entrusting that there are still some similar minded people who are simply trying to make a living in a business they enjoy and not out to take advantage of others. I could use some sage advice...So here goes:
Stupid me- I entrusted GM with _everything_. The plan was for him to take my business to the next level. No non compete/non disclosure. I paid him _very_ well (more than myself) for 2.5 years. Long story short, things went well for the first year or so, but business was not growing enough to keep up with his top-heavy payroll, and I was burnt out. I offered to sell the business to him and had all the details negotiated to both our satisfaction. At the last minute, he claimed he lost his financing. At the advice of my Attorney, CPA and Business Broker, I fired the GM. 5 days later two of my key employees quit with no notice. My ex GM opened his own business, exactly like mine. ( Did I mention he had no prior experience in our industry prior to working for me?) I have proof that he stole files (I can only assume he has everything) from my server, deleted files from my server, and also discovered that he had my screen printer throw away all of my vellums (a week prior to him being let go). So it is apparent that he was playing me and was planning to open his own business all along...
I would really appreciate any advice someone with similar experiences may have. No need to tell me I was stupid-I already have that printed on my forehead...also FYI: My attorney is compiling a lawsuit based on the mounting (daily) evidence I have described.
Thank you for your time.


----------



## Ynkfan1 (Dec 29, 2009)

Good luck, Buddy! I hope it all works out for you. What a POS!

CP


----------



## 59graphix (Aug 14, 2011)

KirbyCo said:


> This is my first post and I am feeling a bit timid to spill my guts. I am entrusting that there are still some similar minded people who are simply trying to make a living in a business they enjoy and not out to take advantage of others. I could use some sage advice...So here goes:
> Stupid me- I entrusted GM with _everything_. The plan was for him to take my business to the next level. No non compete/non disclosure. I paid him _very_ well (more than myself) for 2.5 years. Long story short, things went well for the first year or so, but business was not growing enough to keep up with his top-heavy payroll, and I was burnt out. I offered to sell the business to him and had all the details negotiated to both our satisfaction. At the last minute, he claimed he lost his financing. At the advice of my Attorney, CPA and Business Broker, I fired the GM. 5 days later two of my key employees quit with no notice. My ex GM opened his own business, exactly like mine. ( Did I mention he had no prior experience in our industry prior to working for me?) I have proof that he stole files (I can only assume he has everything) from my server, deleted files from my server, and also discovered that he had my screen printer throw away all of my vellums (a week prior to him being let go). So it is apparent that he was playing me and was planning to open his own business all along...
> I would really appreciate any advice someone with similar experiences may have. No need to tell me I was stupid-I already have that printed on my forehead...also FYI: My attorney is compiling a lawsuit based on the mounting (daily) evidence I have described.
> Thank you for your time.


There are ways of getting back at soulless individuals like your GM
It is a bit of a gray area but....

Or let karma take it's due course!

Unfortunately the world is full of trash like this.

Good luck!


----------



## ChristFollower (Oct 4, 2012)

Ouch.

My advice is this. Let the legal proceedings run their course, but know that it will take years, and the chance of recovering as much as was lost is almost zero. If you spend much time dwelling on these facts it will only make a bad situation worse.

You can choose to forgive the GM even though he clearly doesn't deserve it, but forgiving him releases the debt he owes you in your mind, and releases your mind from the burden of feeling stupid as you've said you do. You go from being victim to being the bigger man, and by not feeling like you're owed anything, any settlement you do get in the future will seem like money from the sky instead of a fraction of what you were owed.

Don't spend a lot of time feeling stupid. Instead evaluate where you were taken advantage of and develop reasonable responses to this. Everyone in business learns hard lessons - some are harder than others. I partnered with someone once who I had worked with for three years, only to find one day that my key didn't work, because he had been taking the rent money. My offset presses were gone, inventory was gone, files were held by the unpaid landlord, phone bill was around a thousand dollars and in my name only, the list goes on. I lost about $50k but learned a lesson worth at least that much.

What I regret most about that experience is how much time I wasted being filled with rage and hate. Getting those unhealthy emotions out of my mind allowed me to regroup and move on.

Get back on the horse, and remember you were born with nothing. Anything this creep stole from you is something you built from scratch, and if you built it once, you can build it again. This is a major setback but not the end. You'll ultimately be more successful for the experience. You learn far more from mistakes than from successes.


----------



## headfirst (Jun 29, 2011)

Start now. Go back to work at your shop and keep the customers and employees you have. Document everything. You're going to need to prove that he is impeding your ability to do business by using what you taught him against you. 

Document everything. Go visit your clients and bury this douchebag. Then make sure you have everything in writing next time.


----------



## Sues Shirts (May 17, 2011)

Sorry to here this happened to you. Just try to stay focused and let your lawyer deal with him. That is what you are paying him for.

Sent from my DROID4 using T-Shirt Forums


----------



## Mtnview (Nov 5, 2009)

KirbyCo said:


> My attorney is compiling a lawsuit based on the mounting (daily) evidence I have described.
> Thank you for your time.


We all try to learn from mistakes. I am sure you will have an agreement drawn up for future hires and possibly get the current employees to sign. As others have said, let the attorney handle it. I don't know if taking your files might constitute software piracy since I am not a lawyer. Would be nice to put the fear of jail time into him.


----------



## KirbyCo (Aug 29, 2008)

I have been working hard to think positive, focus on the positive things happening with my business (I am truly blessed), and taking the high road when it comes to this POS, but I have to admit, each time another "something" happens or is discovered, I fantasize about the "grey" areas 
TY for your kind words!


----------



## KirbyCo (Aug 29, 2008)

Thank you for your words of wisdom and experience-it really helps and means more than you know. I have learned so much from this experience and am working hard to ensure it never happens again. Mostly I am focusing on all the positives in my business and personal life (and they are HUGE!), and moving on-it's only when another "attack" is waged that I realize the other party may not go quietly and may need to be silenced-by me-and my attorney. Just balancing the ROI on what it will cost financially (& emotionally).
Really appreciate you taking the time...
CR


----------



## guysmalley (Nov 1, 2008)

Without an agreement take the time, energy, money to reinvent your business. Keep it lean creative blow them out of the water. Your success is the best revenge. Keep your eye on the ball. What he did while being unethical wasn't illegal or worth the money to pursue. Tough lesson learned but as others said karma has a way of dealing with people like that.


----------



## VictorConcepts (May 27, 2013)

Can you set up a noncompete disclosure for any employee that you hire in this business!? I'm about to hire on my first employee and would definitely want to set something up because I know everything and sharing that information is priceless in my eyes so it does scare me to teach an employee some things!


----------



## Mtnview (Nov 5, 2009)

VictorConcepts said:


> Can you set up a noncompete disclosure for any employee that you hire in this business!? I'm about to hire on my first employee and would definitely want to set something up because I know everything and sharing that information is priceless in my eyes so it does scare me to teach an employee some things!


I had our attorney draw up a non-compete form for employees to sign.


----------



## dvineci (Feb 25, 2011)

You guys will meet again. As you're being lift up in life, you will past him going down. Keep doing good.


----------



## Louie2010 (Feb 26, 2010)

If you have proof of theft, I would recommend looking into the possibility of pursuing criminal charges. Even a small charge would go a long way in establishing his true character versus yours for your customer base he likely will soon be targeting.

Because it is likely some of them may have been approached to leave as well, if you ask your remaining employees they may be able to provide additional proof for civil and criminal charges.


----------



## codyjoe (May 6, 2013)

KirbyCo said:


> This is my first post and I am feeling a bit timid to spill my guts. I am entrusting that there are still some similar minded people who are simply trying to make a living in a business they enjoy and not out to take advantage of others. I could use some sage advice...So here goes:
> Stupid me- I entrusted GM with _everything_. The plan was for him to take my business to the next level. No non compete/non disclosure. I paid him _very_ well (more than myself) for 2.5 years. Long story short, things went well for the first year or so, but business was not growing enough to keep up with his top-heavy payroll, and I was burnt out. I offered to sell the business to him and had all the details negotiated to both our satisfaction. At the last minute, he claimed he lost his financing. At the advice of my Attorney, CPA and Business Broker, I fired the GM. 5 days later two of my key employees quit with no notice. My ex GM opened his own business, exactly like mine. ( Did I mention he had no prior experience in our industry prior to working for me?) I have proof that he stole files (I can only assume he has everything) from my server, deleted files from my server, and also discovered that he had my screen printer throw away all of my vellums (a week prior to him being let go). So it is apparent that he was playing me and was planning to open his own business all along...
> I would really appreciate any advice someone with similar experiences may have. No need to tell me I was stupid-I already have that printed on my forehead...also FYI: My attorney is compiling a lawsuit based on the mounting (daily) evidence I have described.
> Thank you for your time.


Unfortunately your only bet is to pursue this lawsuit being setup through your attorney. From what I can tell, it seems that you setup a relationship with this guy without much formal paperwork and unfortunately there isn't much you can do without the paperwork in place prior to these events. I wish you the best of luck in suing the pants off this guy.


----------



## guysmalley (Nov 1, 2008)

I am 60 and had a graphic design studio in nyc for 14 years. I hired many , many art directors, students a few tried to take clients, do some crazy things but 90% went on to major jobs and gave me jobs in return. An agreement should be drawn up but in the long run I have found as long as I was the hardest worker in the place, asking of people nothing that I haven done a thousand times before. Fair but firm there were few problems. I was a fair dictator lol


----------



## ncbigfroot (Feb 4, 2007)

Good luck,Sir Hope all work out for you ..... I dont think you have a case because u fire him & he took what you taught him & make it work out for him.....Learn From Your mistakes...Like Someone already said Karma always comes back.


----------



## Mtnview (Nov 5, 2009)

ncbigfroot said:


> I dont think you have a case because u fire him ...


Hopefully he has a case if the GM took files or software that were property of the OP. He can't do much about the experience and education he gave the GM.


----------



## pcoan (Dec 30, 2009)

Wow, sorry to hear your bad luck. Get back on the horse, and good luck with the lawsuit. Karma is a *****, be ready to laugh when she strikes the GM hard!


----------



## JYA (Jun 2, 2008)

Google "easton sports inc. v. warrior lacrosse inc". You will find quite a bit from around 2005 with regards to stealing files, etc.


Sent from my SCH-I545 using T-Shirt Forums


----------



## GordonM (May 21, 2012)

Not sure if this was mentioned in any of the posts above, as I just skimmed. But few states allow non-complete clauses for former employees. You can have them sign the paperwork but it's meaningless and not enforceable. You cannot prevent someone from making a living in his or her field. 

(When you read about someone like Conan O'Brien being prevented from taking a job as a TV host, remember he was paid up front for the concession.)

You can require non-compete during the term of his employment, and you can require a non-disclosure of your specific business processes (i.e. trade secrets and customer list). These things, in fact, are protectable even without a signed agreement. It will take an attorney to navigate these waters, whether or not you have anything in writing. 

The above is not legal advice.


----------

