Legal Question in Business Law in California

Old boss threatening suit if we open company

I have started my own Mobilehome Sales company. I was a w2/ 1099 employee for company A. The owner of company A, phoned my company, company ''B'', to ask who we were buying our new homes through. I told him we had not decided. He responded, ''I can make this very long and hard and expensive on you real quick...even if I don't have a leg to stand on... we need to talk'' I went to pick up a check for a deal I worked on, and he refused to pay me until we sat down. Tuesday we sat down with his assistant & accountant & him. My partner and I sat down also. His negotiation was: pay him $15,000 plus buy all our new homes through him, or he is going to file a lawsuit for Economic Interference, Loss of Revenue, Lost Opportunity, & Gross Negligents. We just started this company five weeks ago and we have no money in the S Coporation. The S Corp currently owns $9,000 to me that I loaned it. What should we do, or can we do from here?


Asked on 12/06/06, 5:15 pm

3 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Old boss threatening suit if we open company

So far, nothing you have described would lead me to believe that your old boss has any grounds for a lawsuit against you. He is most likely trying to intimidate you.

If you wish to discuss the matter in more detail, feel free to contact me for complimentary consultation.

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Answered on 12/06/06, 5:40 pm
Terry A. Nelson Nelson & Lawless

Re: Old boss threatening suit if we open company

Anybody can sue anybody for anything. Winning is more difficult. If he wants to file suit and risk potential 'abuse of process' claims, he can. It would mean you get to spend money on attorneys defending it, and then turning around and suing him if you win. Only you can guess whether he will really do so, or whether it is a bluff. If a bluff, call it and proceed with your business, as long as you aren't actually violating the law or your prior agreements with him.

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Answered on 12/06/06, 7:12 pm
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Old boss threatening suit if we open company

Pay him nothing. Do not be intimidated by hollow threats. A meritless complaint will cost him more than you for malicious proscution and abuse of process action. In fact it seems that you have a case against him now for his threats. Call me directly at 1.619. 846.8947

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Answered on 12/07/06, 12:49 am


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