starbital wrote:

, at the beginning of last year (in august 2005) we all signed this "no compete clause" in our contracts that essentially stated that we were not to teach at any other studios or open another studio within a 30 mile radius of hers for at least 12 months after finishing our term... would that still hold up this year, even though the new instructors this year weren't made to sign it and since it was for the '05-'06 year?

If you didn't sign a new contract for 06-07 did your previous contract have an end date for the contract? Some states require that each contract have a beginning and end date to be valid. Some states consider a contract open ended if no end date is implied other than the date you leave employment. Also, were you contract labor (you paid your own taxes) or were you and actual employee with fed/state/soc.sec. taken out? If you were contract labor generally the contract must have a set start and end date, with a clause that states either party can end the contract with ample written notice (usually 30 days).

If your 05-06 contract did infact have an end date and you didn't sign one for 06-07 then you aren't bound to the non-compete. But even if you think this person is a irresponsible flake it is still unethical for you to directly solicit her clients. And if she plans to stay open you would be hurting yourself by opening too close to her. Your best bet would be to go at least 12-15 miles in a direction that has no other studios in that 12 to 15 mile radius. Send advertising using a direct mail coupon company (such as Valpak) to send ads to the zip codes that the studio you worked for and the zip code your new studio (if different) is in. If your former students want to come to you they will. You aren't so far away that they won't come and you didn't directly solicit them, they came of their own free will.