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Thread: Can ex-employer sue for liabilty?

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    Can ex-employer sue for liabilty?

    I was employed in sales/admin for about 10 years, and a minority member of the cc that employed me.
    Never had a full leave cycle due to work demands in that period. As a result of a change in direction of the way the company was taking, I resigned, after being threatened by dismissal.
    I had put out "feelers" to existing clients and found that they would happily support me in my own business of the same nature.
    I know that this is against the "fiduciary responsibilty" that I had with the ex-employer, but I had no effective restraint of trade, and the ex-employer refused to de-register me with CIPC, although I asked them to, in writing. They also refute my claim for "accumulated leave" of about 60 days.
    So I started the new business, and am now being sued for the loss of income they suffered as a result of the clients chosing to do business with me.
    My lawyer, who I ran this by, before doing it, said "Go for it" - now I'm faced with "Liability" and having to re-pay them for their losses. This is the only thing I know how to do, to earn an income. Never worked in any other industry.
    What can I do?

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    I don't think that there is an easy answer. It depends on what they do, what you did for them and it depends on what you do now. Did you steal their IP?

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    Service industry. I merely mentioned that I was going on my own, and some clients were unhappy with ex-employers' service, so they followed.

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    Platinum Member sterne.law@gmail.com's Avatar
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    What happened to your lawyer?
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Quote Originally Posted by sterne.law@gmail.com View Post
    What happened to your lawyer?
    Now trying to extricate me from this mess, at great expense to myself....
    Last edited by AlB; 28-Nov-13 at 09:14 AM. Reason: Fat finger syndrome

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    Platinum Member pmbguy's Avatar
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    What does your previous employment contract say? are you in breach?
    It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. – Charles Darwin

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    Quote Originally Posted by pmbguy View Post
    What does your previous employment contract say? are you in breach?
    Not in breach of employment contract, but in a provision in the CC act that I have a "fiduciary responsibility" towards the CC. I had asked ex-employer to be removed as a member before going ahead with my plans, but they refused to do so.

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    Quote Originally Posted by AlB View Post
    Not in breach of employment contract, but in a provision in the CC act that I have a "fiduciary responsibility" towards the CC. I had asked ex-employer to be removed as a member before going ahead with my plans, but they refused to do so.
    Your fiduciary responsibility ceases the day you resign as a member of the cc. The fact that they have not dealt with their statutory requirement to have you removed from the CIPC record does not alter the fact that you resigned. So, a big question is whether you actively and specifically resigned as member in writing?

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    AlB (28-Nov-13)

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    Platinum Member sterne.law@gmail.com's Avatar
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    If I understand, you are still a member of the cc?
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Quote Originally Posted by sterne.law@gmail.com View Post
    If I understand, you are still a member of the cc?
    Yes. I had asked ex-employer to be removed as a member before going ahead with my plans, but they refused to do so.

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