If you run a business, you may be very familiar with the reality that the solicitation of customers or employees by former employees or competitors can harm a company’s standing in the marketplace. This is a serious concern, among industries ranging from B2B marketing to bridal retailers to legal services. If your business is currently weathering a solicitation concern, it’s a situation that can quickly escalate, impacting your company’s operations, morale and bottom line.
When does this behavior cross the line from competitive business practices to actionable legal wrongdoing? And ultimately, is it time for your company to file solicitation litigation?
Considerations that should be weighed carefully
Solicitation litigation may be warranted when there is a breach of contract—specifically, a non-solicitation agreement—or when the actions of a former employee or competitor infringe upon your business’s legal rights. When someone knowingly and unfairly competes by using your company’s confidential information or by targeting your workforce and customer base, it undermines the very foundation of fair competition.
Before considering legal action, it’s essential to have clear evidence of wrongdoing. This evidence might include communications between the offending party and your customers or employees, evidence of confidential information being used to your company’s detriment or a direct violation of the terms in a non-solicitation agreement.
The presence of harm or potential harm to your business from these actions is also a consequential concern. This could manifest as lost clients, decreased revenue or the erosion of competitive advantage.
Ultimately, a decision to file solicitation litigation must be inspired by the specific circumstances facing your business and the strategic importance of the actions in question. Suppose your company’s attempts to resolve the matter amicably have been unsuccessful and the damage or potential damage to your business is significant. In that case, litigation may be an appropriate course of action.
