Legal Question in Business Law in California

Attorney At Law

Under these circumstances you may be entitled to a court injunction against him on two grounds. Contacting your customers may be an illegal theft of trade secrets and the use of the business name is likely in violation of both state and federal trademark laws

Unfair competition

It sounds like you may have a good case forunfair competition and misappropriation of tradesecrets. Damages and more importantly injunctive relief may be available.

unfair competition/trademark infringement.

Suggest you retain counsel _immediately_ to sue the ex-employee for trademark infringement, misappropriation of trade secrets (your customer list) and unfair competition. If your budget permits, I would seek an immediate temporary retraining order to stop the ex-employee from contacting your customers or using the similar trade name. If you wait, you may lose the right to such relief. Also, you may want to consider a direct mail and/or advertising outreach to your customers and potential customers to inform them that the ex-employee's company is not affiliated with your company. You need to be careful how you word any such material. Consult legal counsel.