Saturday, October 14, 2006

Employment: Non Compete agreements for employees

For simplicity sake please understand that duration of the restriction, geographic area of the restriction, scope of what is considered a 'competitive business' to your employer, and public policy all affect your employers chances of enforcing a non compete.

For example a six month restriction in a large geographic area may be upheld, and a three year restriction limited to State of Connecticut may also be upheld.

The reality is very fact specific. There are many cases where an attorney can only give you a rough idea of the enforceability of the restrictions because the facts that would lead to a conflict between you and a former employer may not have occurred yet, and because Courts do not act in a uniform way at all times. For example, there are some Connecticut trial courts that have held that an employer cannot enforce a non compete restriction against an employee where that company has previously violated a material component of the employment agreement within which the non compete restrictive covenant is contained. Such a fact may inform a court reviewing your matter, and such a fact may be persuasive to the Court, but they would not be bound to follow the decision of another Superior Court Judge. One other factor to consider is the simple concept that statutes and case law change from time to time. Be wary of anyone who claims to have a crystal ball.

Non compete clauses should be taken very seriously. Do not just assume that if a restriction is broad and vague that it won't be enforceable. Do not assume that just because you have a reason to believe that the employer won't enforce it against you that such notion is an absolute fact.

You should consult with an attorney before you sign any employment agreement, especially one with a non compete clause.


**Please note: This article is for general information and discussion purposes only. You should not use any information in this article as a substitute for consulting an attorney or other competent advisor. Nothing in this article should be construed as forming the basis of an attorney-client relationship. This article is not a solicitation.

Attorney Unger is licensed to practice law in Connecticut State and local federal courts only.

Friday, October 13, 2006

Can you afford this home??

Buying a home is not as simple as picking a home and getting a loan. Here is a brief list designed to help you avoid pitfalls in regards to financing a home purchase:

1. You need to determine if you can truly afford the purchase. Find out before you sign a purchase contract what your monthly cost is going to be including loan payment, taxes, common charges, association due, and estimated utilities.

2. Get a Good Faith Estimate from your loan officer prior to signing a contract to purchase a home.

3. Get a preliminary Truth in Lending sheet showing the estimated payment schedule for your loan. You may be surprised to see that a few years down the line your payments are expected to jump dramatically.

4. Realize that if a loan program seems to good to be true, it probably is......

5. Pay attention to how responsive your mortgage broker is in returning your calls/emails, following up on pending items, and explaining the details of the loan product & pricing that you are considering. Look to see to what extent they deliver on any promises they make early on. Whatever early experience you have with them, bad or good, is likely to be reflective of how the entire transaction proceeds.

6. Most importantly, talk to trusted independent financial advisors about what you can afford after choosing a loan product but before signing a real estate purchase contract. Your attorney is generally not the one you should rely on for financial advice, and most will not offer it. You want to talk to a reputable CPA, financial analyst, perhaps a family member that is excellent with budgeting and finance.