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Breach Of Contract : Can A Case Be Filed In Us

Criminal Law Discussion Forum

Breach Of Contract : Can A Case Be Filed In Us

Postby Brawley » Mon Dec 05, 2016 11:10 pm

Dear Mr. Razack,

I worked for a Indian firm and signed a employment contract that prohibited me from competing in the same arena and soliciting their clients and employees for 12 months. I started a company in a similar business as my previous employer before the end of those 12 months. Subsequently they filed a case against me and the company in India, Bangalore. While the case has been underway, they tried calling us for a negotiation but proposed something so preposterous that it would have amounted us to close down our business and hurt out families too. We did not accept their terms. Now they have filed a case against us in US as the employment contract mentioned that the jurisdiction will that of state of Illinois. The company in India is a wholly owned subsidiary of a similar entity in US. Besides, they have been talking to our client and our employees and trying to malign us and harm our business.

Our questions are

1) Given that I'm an Indian Citizen and the employer is an Indian entity, can they file a case in US? and what is the remedy I have as Indian Citizen.

2) Can their actions be termed anti competitive? and do we have a legal recourse on that?

3) They also tried to maling my partner saying he entered US on an illegal Visa, which is not true - do we have a strong case and a legal recourse?

Thanks
Brawley
 
Posts: 31
Joined: Tue Mar 04, 2014 6:08 pm

Breach Of Contract : Can A Case Be Filed In Us

Postby Benat » Tue Dec 06, 2016 12:56 am

Dear Manoj,

The fact that you entered into an employment contract with a company which is wholly owned subsidiary of a US company is binding on you. The contract entered into by you covenant that the Laws of the State of Illinois will apply and so also the jurisdiction. The terms have direct bearing on a contract and prevail over the party who breach the contract. In your contract it is conclusively agreed that you will not start a company in competition in similar trade or arena and restraint on your soliciting clients and employees. This is the may reason for the claim by the US entity against you.

The moot question is your operating parallel to your previous employer in breach of the terms of the contract and their claim, in my opinion, is bonafide.  The Judgment of the US courts will only act and be of evidentiary value than being enforced. It will only be operative within its jurisdiction and not in India as US is a non-reciprocating country, the Indian Courts cannot be an executing territory for enforcing its judgments as provided under section 44A of the Civil Procedure Code, 1908. So therefore, the judgment even if rendered against you, it cannot be enforced in India, except by filing a suit and leading the judgment as evidence before the Indian Courts.

The suit filed by them before the Indian Court may be one for claim of damages, compensation on account of breach of contract and restrain of the business operated by you on similar lines as being in violation of the agreed terms.

Now to your questions; In my opinion, the US company has a right to seek remedy before the competent court at Illinois and try to enforce it within its territory on the judgment. As an Indian you are not immune to their judicial domain as the claim is against your committing breach and agreeing to Jurisdiction of the Courts in US. You need to defend, if so advised.

Competition Law, in my opinion, may not apply to your case as there is already an agreement signed by you and the restraint that apply. Since you have breached the terms before the expiry of the term as your trade is unreasonable and started parallel to your previous employer. As for maligning your name and reputation terming your entry illegal, you can lay a claim for damages and compensation which will be a separate cause of action. You need to take suitable advise from a lawyer of repute and authority on the subject of Competition and Anti Trust Laws before taking any decision.

I hope this suffice your query.

Best regards

Javed Razack
Benat
 
Posts: 45
Joined: Tue Dec 31, 2013 9:54 am

Breach Of Contract : Can A Case Be Filed In Us

Postby Moor » Tue Dec 06, 2016 3:30 am

Dear Mr. Razack,

I worked for a Indian firm and signed a employment contract that prohibited me from competing in the same arena and soliciting their clients and employees for 12 months. I started a company in a similar business as my previous employer before the end of those 12 months. Subsequently they filed a case against me and the company in India, Bangalore. While the case has been underway, they tried calling us for a negotiation but proposed something so preposterous that it would have amounted us to close down our business and hurt out families too. We did not accept their terms. Now they have filed a case against us in US as the employment contract mentioned that the jurisdiction will that of state of Illinois. The company in India is a wholly owned subsidiary of a similar entity in US. Besides, they have been talking to our client and our employees and trying to malign us and harm our business.

Our questions are

1) Given that I'm an Indian Citizen and the employer is an Indian entity, can they file a case in US? and what is the remedy I have as Indian Citizen.

2) Can their actions be termed anti competitive? and do we have a legal recourse on that?

3) They also tried to maling my partner saying he entered US on an illegal Visa, which is not true - do we have a strong case and a legal recourse?

Thanks
Moor
 
Posts: 51
Joined: Sat Feb 01, 2014 12:44 am


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