Abc Affiliates Michigan
Is this restrictive covenant valid and enforcable under Michigan law?
“Corporation and its staff, including subcontractors, during the term of their relationship with Corporation, shall not, directly or indirectly through any person, firm or company which is affiliated in any manner with Corporation, without the prior written consent of ABC during or within twelve (12) months after the termination of this Agreement, solicit or provide the contract programming or the software consulting business of any of ABC’s clients to whom Corporation employees were assigned through ABC during the term of this Agreement.”
Situation
There is an independent contractor agreement between Corporation which is a GA corp. and ABC which is a MI corp. Corporation provides an IT consultant to ABC that provides the same resource to DEF company which is a CA corp. that further provides the same resource to a GHI company for a project in Mexico where the work is being performed. If GHI company approached Corporation to provide the resource directly. Any problems here?
You have a problem. When GHI approaches Company, they are removing ABC’s profit. That is what the non-compete agreement is specifically attempting to prevent.
Charles Woodson’s First TV Interview (Shomari & Sean O’Neill Show 1998) University of Michigan
