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Sam Leccia's Debut on hold
Sam just wrote on FB that his new cigar debut has been put on hold due to legal reasons (Oliva?). Also he's been barred from IPCPR due to legal reasons. I was really looking forward to his newest creation. Hope everything works out for you Sam! Best of luck.
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Re: Sam Leccia's Debut on hold
I think I read that Oliva sued him to enforce a do not compete clause in his contract with them.
Edit: Yup, here it is. Oliva is claiming Sam is under a five-year non-compete agreement. |
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I hope it can be resolved without getting too nasty in the courts. Sam is a talented guy.
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Yep. I knew about the legal stuff, but ig uess now his line won't be coming out anytime soon. Hopefully it all works out. I've seen pics of the cigar and the band, it looks nice.
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I'm no expert, but as far as my amateur analysis goes, if a court is already preventing Sam from releasing his line and attending ICPCR then things don't look good for him. That smells like a preliminary injunction, which would mean that Oliva was able to persuade a judge that it has a good chance of prevailing in the overall lawsuit to enforce the agreement. That would mean that the only significant issue might wind up being whether five years is an appropriate length of time.
Again, this is all just my amateur reading of the few facts as we have them. |
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Wow! 5 years is a hell of a length of time for a non-compete clause. I hope everything is able to be worked out in an amicable fashion.
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On the surface it certainly seems like the split with Oliva may not have been amicable. Sam may have been asked to leave under less than ideal circumstances for him and now Oliva is showing that perhaps they are less than happy with Sam trying to show them up with a new brand of hype stemming from the notariety of Oliva making him the face of the NuB and Cain lines. :hm
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That's really unfortunate since I think highly of both Sam and Oliva. Nice folk on either side...unfortunate to see them at odds.
However, as much as this is a brotherhood to us, I know this is a business for them. Contracts are contracts, although it seems odd that Sam would go ahead with a new cigar line if he knew he had a standing non-compete contract with Oliva. I'm sure there is more to this story than we know. |
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My thought too Brian. It IS a weird move for the outsiders :/
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If we're looking for a silver lining here, at least this means that any cigars he's already had made will likely be well aged before he can sell them! |
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Reasonable...I'm sure it will hold up in court :D lol
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non compete clauses are fairly standard in many industries especially when their is a significant investment made by the company into an individual (as in this case)
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Oliva put a lot of time and money into the creating, promoting and distributing the NuB and Cain line and had the foresight to make someone like Sam the face of it. It seems Sam thought he was going to able to immediately transfer the success given to him by Oliva to his own company. Apparently Oliva had different ideas and knew this when they put the non-compete clause in his contract. If he had left on good terms, would they allow him to compete immediately? :hm
Also remember that Sam was going to need another large cigar company to make, promote and distribute his new line. Again, Oliva probably doesn't want to allow him to transfer the image/success they created for him to another 'competitor' in the industry. Not knowing much about competition amongst the large companies, it may be to prevent him from helping another company or it may be out of spite based on the nature of the split from Oliva. :sh |
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Im disappointed in this delay but hopefully everything works out.
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Although I understand the lawsuit and with the information I have Oliva is right to sue Sam, I think the timing is aweful and will not only hurt Sam but also Oliva as they are 'the bad guys' now in a lot of comments I read online.
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Re: Sam Leccia's Debut on hold
Typically NC's don't hold up too well in court. The last one I remember was an exec. leaving Microsoft for Google. MSFT tried to sue but got no where. I am not sure with the case of Sam though because it is very direct competition, also I would not be surprised if his new cigar was very similar to the Cain and NUB cigars he already made.
I would like to put my self on the top of the list for guys to receive all those cigars that are just going to be sitting in a warehouse somewhere for an indefinite amount of time. |
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Regarding the 5 year Non-Compete clause, I'm wondering:
Does the clause begin when Leccia started employment with Olivia in or around 2008 (ends in 2013), or when Leccia left the employment of Olivia in or around 2010 (ends in 2015)? |
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Also, Sam's Debut line was directly matching up with, at least to some degree, Studio Tobac's NUB Plus plans: the announced Debut vitolas were 5x60, 7x60, and a 7x52 figurado. |
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So did Sam actually create the blends for NUB and Cain lines?
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Wow... Thats bad... Hopefully they can settel it down in a good term...
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Maybe Leccia could offer up his entire inventory of the above sizes to Olivia, and agree to not create these size vitola' for the next 5 years. In exchange; Olivia would be asked to drop their law suit/non-compete clause, and allow Leccia to continue forward with his line of cigars, but in different size vitola' other than the size vitola' in question. Just a thought... |
Re: Sam Leccia's Debut on hold
there's a good way to do this and then there's the way that oliva did it. they could have let sam go to rtda and then settle this for a good portion of his profits for the next 4.5 years and then none of us would be having this discussion
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I knew something had to happen. I didn't see how he was going to just be able to come out with his own line without some sort of agreement with Oliva.
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On the other hand, NC clauses are standard for most employment contracts, but 5 years? That's crazy and he probably should not have agreed to it in the first place. |
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This is crazy, I have a feeling it may hurt Oliva and help Sam
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Oliva is one of the most respected/consistent/affordable/well-made/highly rated cigars across the board and Studio Tabac seems to be just another step in the right direction for them. :2 |
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:r :r :r That's about the funniest idea I've heard since the original Nub! "Look guys... this little chunk right here is the best part, so we're only going to give you that. Oh, and we're also going to give you all of this other part attached to it. You know, like all the other cigars have." Which is it, Oliva? "Sweet spot" or not? |
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If the issue is a non-compete agreement/contract generally you have to show that there is a likelihood of irreparable harm/injury if the preliminary injunction is not granted.
If the case makes it to trial the judge reviews the agreement using a test typically developed under the case law of that state (common law). There are a number of factors that are considered. Geographic scope, length of time, norms within the industry, and public policy are some factors that are considered. It varies from state to state depending on how the case law developed within that state. |
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The biggest positive I can see for Mr. Leccia is that the non-compete covenant could be considered unenforceable if the duration is ruled to be unreasonable or overly broad. And let's face it, 5 years as well as restrictions on a national level could be deemed an unreasonable restriction on Mr. Leccia's ability to earn a living. Logically, I could see the judge scraping the non-compete clause in this case.
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There are many cases of non-compete covenants being deemed unenforceable because of the unreasonable duration even though both parties signed the agreement. Most revolve around the issue of whether it unreasonably restricts the persons ability to make living. Many factors obviously come into focus on these types of cases, such as the range and scope of the restrictions, the type of work itself and whether a new venture would have a negative effect on the company if trade secrets were utilized. This is just to name a few. Not every NCC or CNC is open and shut simply for the fact that both parties signed the agreement. And seeing as how each one is different, the duration also doesn't definitely mean Leccia got a "chunk of money" up front. :2 |
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Crazy stuff! I am curious as to how this is going to play out.
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