Legal Question in Business Law in California

Do we have a case

My son & his wife have an environmental distribution company. They have an exclusive with the manufacturer for the United States.

My son acted as an agent for the manufacturer to help find a buyer. After bringing the buyer to the table and helping with the offer, the buyer stole his customer base by calling on key accounts presenting himself as the future owner.

Their entire business in now in jeopardy and the buyer has money and lawyers to work against my son and daughter-in-law's position of exclusive distribution.

They are destitute and all the groundwork they did for the past two years to build the manufacturer's product has been pulled from them through this buyer's action with the manufacturer.

Do we have a case? Can you help?


Asked on 10/24/01, 2:08 am

4 Answers from Attorneys

Re: Do we have a case

Your son definitely needs to have a long talk with an attorney going into the details involved in this matter.

Customer lists are generally considered to be trade secrets of the company. However, in order to remain secret and protectible you have to keep the customer list secret.

Information is needed about what agreements, if any, were made with the "evil buyer". Additionally, what role is the manufacturer playing when they know that your son was to be the exclusive distributor?

There are a lot of questions here. However, bottom line is that it would appear that there is a case that should be investigated immediately. Failure to act quickly could prejudice your son's rights to recover.

J. Caleb Donner

LEGAL WARRIORS (R)

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Answered on 11/26/01, 6:09 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Do we have a case

Your son certainly does have a case, and probably has a case on each of several theories including breach of contract and torts such as conversion, misappropriation of business secrets, intentional interference with contract, and intentional interference with prospective business advantage.

The strength of the case depends, however, on the quality of the evidence available and whether the other side has any defenses not evident from your presentation of the facts.

If the parties and/or the business is located in Northern California, I would be pleased to provide a free consultation and perhaps we could find a way to pursue the matter within your budget, or I could refer you to another source of low-cost legal assistance.

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Answered on 11/23/01, 4:51 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Do we have a case

A lot more detailed information is needed, specifically, is there a contract between your son and the manufacturer and what are the exact terms. your question is too complex to answer here.

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Answered on 11/22/01, 1:53 pm
Michael Cortson Law Office of Michael D. Cortson, Esq.

Re: Do we have a case

Look at Courtesy Temporary Service, Inc. v. Camacho , 222 Cal.App.3d 1278

That case deals with stealing customer lists.

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Answered on 11/22/01, 10:55 pm


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