Legal Question in Business Law in Texas

Employee steals customers. Civil or Criminal?

After termination we discovered an emplyoyee had not only malicously tried to sabatoge our co. internally but, had also filed incorp. papers to start up a LLC in direct competition with us. These papers were filed 4 months before his employment was terminated. Amount of damage unknown as of yet. Is this Civil or Criminal?


Asked on 1/29/02, 11:08 pm

2 Answers from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Employee steals customers. Civil or Criminal?

Could be both. Unfairly competing is civil. If sbatoge means destroying company property, or stealing it, it that could be criminal. You may be able to get injunctiont to stop the unfair competition activity and eventually get damages if the defendant has property, but the legal cost could be substantial and would have to be compared to the benefit you would recieve. Larry Maun 713.266.2560

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Answered on 1/30/02, 1:03 pm
James Grissom Law Office of James P. Grissom

Re: Employee steals customers. Civil or Criminal?

Just to supplement Mr. Maun's rely a little bit - the civil violation would be dependent upon any agreement between the two of you while employed or after termination, that would specifically prohibit competition. No specific code or statute prohibits employees ex- or otherwise from competing.

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Answered on 1/30/02, 2:48 pm


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