Legal Question in Business Law in California

Re: Customer Relationship Intentionally Damaged

Well, for better or for worse, and often with mixed results, the codes of law and the codes of ethics are incongruous.

Here's what you can and can't sue for:

You can't sue either employee for leaving your employ, except that in some instances that might amount to a breach of contract, but your damages would be limited to the harm done you by not having that person's services, and not the harm done you by someone else having his services.

You can't sue either of them for forming a competing business, or for working for a competitor.

You can, however, sue for intentional interference with contractual relations to the extent the employee induced or tried to induce your customer to breach a contract with you.

You can sue for intentional interference with prospective economic advantage - a kind of nebulous-sounding tort, but well recognized here.

If the statements made were untrue, you could sue for slander or libel.

Finally, if any trade secrets, such as customer lists compiled at a significant cost and from non-obvious sources (trade directories don't count), you may have an action for misappropriation of trade secrets.

Re: Customer Relationship Intentionally Damaged

IF the conduct is in CA, then you can sue here. IF you can show they improperly targeted your customers, that violates CA rules. You need to talk to CA counsel about the specific facts. Feel free to contact me to discuss your rights, remedies and costs of taking action.

Re: Customer Relationship Intentionally Damaged

Speak with California counsel. Remember for the future, business ethics are best defined in a well-written contract, whether with employees or those you do business transactions with.