Legal Question in Business Law in California

Lawsuit from buyer of my business

I sold an internet business 2 years ago. The buyer has filed a lawsuit with many complaints. 9/10 complaints are without merit or evidence, and there is one complaint that, frankly, is just plain crazy. When I sold him the website, there was a tradename on the website that I created and used, for the purpose of selling and branding generic items. This tradename was included in the purchase agreement. The trade name was something like ''XYZ generic products and equipment'' (sorry, I cannot say the real name, but this is really close.)

This is how the trade name was spelled in the LOI, the purchase agreement, and a dozen other documents. All the sudden, in the summons, plaintiff says he was tricked and thought he was actually supposed to get ''XYZ, Corporation'' and claimed that I sold him assets that didn't belong to me. However, no where in any contract is the phrase ''XYZ Corporation'' EVER mentioned, not once! Nor was it mentioned verbally! It doesn't make sense, and it's the first time he ever mentioned ''XYZ Corporation.''

Furthermore, this ''XYZ Corporation'' is 40 yrs. old, w/ 50+ employees, located 3 states over. Plaintiff cant expect court to believe this? can he? is this grounds to get case dismissed for frivolous lawsuit?


Asked on 1/08/08, 10:25 am

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Lawsuit from buyer of my business

You may be able to get the case dismissed without having to go through trial, but I would need even more detail than you have provided before I could assess your chances.

There is a procedure called a demurrer which might win the case quickly for you if you have only recently been served and if you have yet to answer. A similar procedure called a motion for judgment on the pleadings might also work if the case is further along. Either option will only work if the allegations in the complaint are legally insufficient and/or are contradicted by exhibits attached thereto (such as the website or the contract).

You may also be able to win your case before trial via summary judgment, but that procedure is more complex and may have to wait until you have conducted discovery.

Feel free to contact me directly if you want to discuss these options further.

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Answered on 1/08/08, 3:37 pm


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