The Daytona Law Blog

Most in Daytona Beach may anticipate that the business world will be cutthroat and competitive. Yet simply because you and your company are in a state of constant competition with your competitors does not mean that you (and them) are not required to follow ethical practice guidelines. Some might hear the term "unfair competition" and roll their eyes, believing it to only be an accusation made by companies that are falling behind in their markets. Yet several business representatives often come to us here at Smith Bigman Brock asking for specific examples of unfair competitive practices. 

Finding an answer to such a question requires a knowledge of Florida's Deceptive and Unfair Trade Practices Act. Here, it adopts the same standards set forth by the Federal Trade Commission Act. This legislation defines unfair trade practices to be: 

• Any that harm (or are likely to harm) consumers
• Any that cannot be reasonably avoided by consumers
• Any whose benefits are not outweighed by the countervailing benefits to both consumers and competitors

Of all of the assets that businesses in Daytona Beach value, chief among them has to be their employees. This is why if you do happen to lose an employee, your greatest fear may be that they will either immediately go to a competitor and share some of your valuable trade secrets, or try and poach some of your other employees. Many clients come to our team here at Smith Bigman Brock convinced that a non-compete agreement will prevent this, yet that depends on the nature of the agreement. If its deemed to be too restrictive, the court may actually rule that it is non-enforceable. 

That actually represents a step up in the legal treatment that such agreements have received historically in Florida. Per the Florida Bar Journal, non-compete agreements were often ruled void for decades due to them being perceived to be restraints on trade under common law. In 1996, however, the state enacted legislation meant to specifically address non-compete agreements. This new standard (found in Section 542.335 of Florida's state statutes) says that non-compete agreements can be enforced provided that their terms are proven to be reasonable relative to time, area and line of business. What this means is that as long as your non-compete agreement is not so restrictive that a departing employee will not reasonably be able to immediately find work, the court may very well validate it. 

In our litigious society, every business must remain wary of lawsuits. No company wants to face a time-consuming, expensive, image-damaging lawsuit. While every business’s level of risk varies, litigation remains a constant threat for most companies.

It is wise for business owners and their attorneys to be aware of some of the most common types of lawsuits against businesses. This way, they can take proper precautions to reduce their risk of litigation.