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Sending a “Cease and Desist” Letter in a Non-Compete Matter

// Dallas, Texas, United States // Attorney Keith Clouse // Keith Clouse

Litigation over non-compete agreements is usually fast-paced and expensive. So, in an effort to avoid filing suit over a perceived breach of a non-compete agreement, a company might take the preliminary step of sending a cease and desist letter. A cease and desist letter reminds a former employee of his contractual obligations and lets him know that the company intends to take legal action if he does not immediately stop violating his agreement.

Sending a cease and desist letter has several advantages: • The letter could end the problem. If the former employee stops his competitive activity in response to the letter, the company avoids the time and costs associated with litigation. • The letter gives the company time to investigate suspected breaches while demonstrating its resolve to protect itself from unfair competition. • If litigation becomes necessary, the letter could help the company in court. It serves as notice to the former employee of the alleged breach, and it demonstrates the company’s attempt to resolve the matter without court intervention.

While sending a cease and desist letter is not advisable in every situation, doing so can be a good first step in some situations. To discuss a non-compete matter with an employment law attorney, contact an employment lawyer in your area. This article is presented by the employment law attorneys at Clouse Dunn LLP. For inquiries, send an email to debra@clousedunn.com or call (214) 239-2705.

Contact Keith Clouse

KEITH A. CLOUSE

Clouse Dunn LLP

214.220.2722 214.220.3833 ( fax) keith@clousedunn.com