By Rob Harris
Because certain businesses have minimal barriers to entry, companies need to be mindful of actions they should consider in contemplation of competitive threats. A recently filed lawsuit demonstrates one such risk.
International Junior Golf Academy proclaims that it “trains junior golfers for success in tournament golf and beyond. We are the only academy in the world that combines training, academics, and competition. Through our supportive and competitive environment, students develop the critical qualities of commitment, goal setting and a consistent work ethic to best impact their academics, golf, and future endeavors.” By way of history, IJGA states that it “opened its doors with an enrollment of six students in 1995. By 2000, the Academy had grown to the point that a housing campus was needed. In 2004, the program reached 100 students and now hosts over 140 full-time students.”
David Goolsby, a former instructor at IJGA, appears to also be an aspiring entrepreneur. He severed his relationship and formed the Hilton Head Junior Golf Academy, which, guess what, purports to “cater to the junior golfer that is looking to receive the most advanced styles of developmental training available in the world.”
Unhappy with the emergence of the competition, IJGA commenced suit, claiming that Goolsby stole its trade secrets (????), described only generally as IJGA’s “program and system” and information about its students, their parents and the management and faculty of IJGA, and that Goolsby acted unlawfully in soliciting IJGA’s students while badmouthing IJGA.
Unsurprisingly, Goolsby has denied the claims made by IJGA, noting perhaps most prominently that he is a free agent, unencumbered by an employment contract, secrecy agreement or non-compete agreement.
Therein lies the cautionary tale for those companies that seek to head off competition before it arises: to the extent permitted by applicable state law, consider employment provisions that limit the ability of (former) employees to compete, to solicit your customers or your employees, or to utilize your customer lists or other confidential information.
After all, just as IJGA built up a following within five years “to the point that a housing campus was needed,” so can another golf instructor with appropriate skills, energy and personality.
Robert Harris is an attorney and the founder of the site www.golfdisputeresolution.com, where this article first appeared.
