Yes, it's true, Scroll. Almost.

CAT, The Center for Appropriate Transport, is threatening to sue me for violating a non-compete contract I signed when I worked there. The extremely broad (my opinion) contract states (paraphrased):

"For two years after, employee shall not compete with CAT, either directly or indirectly, thought(sp?) employment, or on a consulting or advisory basis, or in many(sp?) other manner, for any entity which provides products, processes or services that are similar to or which compete in the marketplace with CAT's products, processes or services, within the geographic area in which CAT's products, processes or services are sold, including not less than all of the state of Oregon..."


A letter from their attorney states:

"...you are acting in a manner that is immoral and unethical, and that is a violation of CAT's rights."


So despite the fact that I haven't used any of their trade secrets, design ideas, or clients, and NEVER designed or built their bikes during my brief employment there (I was a part-time bookkeeper and one-day rider for their courier service), and waited a full year before producing my cargo bike, CAT is demanding that I either:

A. Stop violating the agreement until my contract expires (late December 2009) and pay a settlement for any bikes I may have sold.

Or...

B. Pay them $10,000 to be released of the contract.



I went to talk to the director at CAT and asked if we could please talk things out, come to an arrangement, or compromise somehow. He accused me of acting unethically. I said I disagreed and at that point he seemed to become very upset and told me "to walk", which I found sort of ironic (I think "ride" would've been more transport "appropriate". Oh well). He stood up, I stood up, and he shooed me out the door. Later, I sent him an email which said:

"Let's talk for real. Calmly, civilly, and with mutual respect. I am willing to meet with you anywhere at any time. I'm eager to listen to your point of view, and hear what you have to say. Let's work out our differences in some way, whether it be an arrangement or compromise. We can manage this conflict productively. We're only two people. It can be easy. A LOT of time, energy, and money to be spared by both of us if we can negotiate something. This is an attempt to communicate with you. Please feel welcome to respond to this email, call me at 541-515-3936, or come to my home anytime. I live at 2260 Kincaid St.

Sincerely,
Lane"

A few days later he wrote back, saying my email was appreciated, and negotiating differences beats the alternatives, and I'd be expecting a letter from his attorney (still, no offer to simply sit at a table together and talk).

I received an email from the lawyer last week, and that's when the demand for money was made.

In MY OPINION, CAT's actions demonstrate the exact opposite of what its legacy and mission statement claim to stand for. I believe CAT is misusing the nature of this contract as a convenient tool to suppress and restrict normal and ethical competition.

So now the ball is in my court. I'm very interested in hearing everyone's opinion regarding this situation, as well as legal advice, personal experiences, etc...



Obviously, the web is chock-full of info regarding this type of contract. Here's some basic info:
Wikipedia-Non-compete agreement
From the Labor Law Center