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Vogt, Resnick & Sherak, LLP Successfully Arbitrates Non-Circumvention Agreement

Non-circumvention agreements are often used to protect ideas, opportunities, and leads in business transactions. Essentially, they require the information provided by one party to be used exclusively for the purpose of pursuing a business relationship between the parties.

Stephan H. Andranian, a partner at Vogt, Resnick & Sherak, LLP (“VRS”), represented a Los Angeles client whose business involved connecting various manufacturers with e-commerce stores in order to sell merchandise directly to customers online. VRS’ client used a non-circumvention agreement in order to protect its right to the commissions, which were based on the manufacturer’s gross sales via the online retailers. However, after the accounts were set up, the manufacturer stopped paying the commissions due, so the client hired VRS to enforce the agreement. After a one-week arbitration hearing involving multiple witnesses, VRS obtained a judgment for its client against the manufacturer for all of the commissions due under the agreement. In addition, the manufacturer was responsible for attorneys’ fees and costs of suit incurred by VRS’ client, for a total judgment in excess of $250,000.

The law firm of Vogt, Resnick & Sherak, LLP can assist with drafting and negotiating agreements to protect your business interests, as well as enforcing such agreements should the need arise.