Legal options for companies who have experienced a former employee taking clients away from business can vary based on the relevant jurisdiction, but in most jurisdictions, employers may be able to take legal action against the former employee by pursuing claims such as misappropriation of trade secrets or breach of contract.
In some jurisdictions, employers may also be able to pursue tort claims for “interference with contractual relations” (sometimes referred to as “tortious interference”) if they are able to show that the former employee was acting intentionally and improperly interfered with their existing relationships with customers/clients. In order to succeed on this type of claim, an employer will typically need to demonstrate that: 1) there was a valid contract between them and another party; 2) the defendant had knowledge of this contract; 3) intentional acts were taken by the defendant which interfered with performance under said contract; 4) damages resulted from such interference.
Further, in certain circumstances it may be possible for an employer to obtain injunctive relief (an injunction is a court-issued order requiring someone either not do something or do something), but obtaining an injunction is often more difficult than obtaining damages because it requires demonstrating that harm is imminent if no action is taken. If successful however, an injunction can prevent any further interference or solicitation by preventing contact between parties involved in said transaction(s).
As mentioned previously, these recommendations and suggested courses of action should not be considered legal advice and depends heavily upon individual facts in each case. Therefore, affected businesses should consult directly with licensed attorneys familiar with applicable laws within their jurisdiction before taking any additional steps regarding this matter as statutes vary greatly across different states/countries regarding potential remedies available and limitations imposed upon these types of actions.
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