Legal Question in Business Law in California

business slander - business partner decided to renig releasing confidential

Hello and thanks in advance for your help. I am a thriving member in the cattle industry and am putting together a sale in an effort to move business forward and set a a new standard for our industry in an effort to propel sales thru marketing. As a start up business, essentially being the first sale had we are spending about 50% on marketing and have perfectly mapped out the rest of budget. A cosigner in our sale has backed out in the last minute despite saying his comfort and desire to do so and in turn has contacted a few people, who are friends, and taken it upon himself to release my business plan to other parties in an effort to slander my character as a result of his fears in the end. With this has also posted confidential information regarding the sale online causing a rucus probably because he is no longer involved. There is no contratc between us but what are my rights? IS this illegal? IS this slander? what can be done? Thanks in advance for your help in advance


Asked on 2/16/08, 9:01 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: business slander - business partner decided to renig releasing confidential

I'd say MAYBE it is a form of trade libel, which comes under the general heading of defamation. Slander is also a form of defamation, but slander involves spoken defamation, and I think most of what's happened is in a written (on line) for, but maybe there is some oral defamation going on here too if the ex-cosigner (do you mean consignor?) has talked to others in person or on the phone.

Perhaps more significantly, you may have a case for the tort called "intentional interference with prospective business advantage" or for misappropriation of trade secrets.

You might want to contact a business lawyer in Sacramento; there are many.

What he's doing isn't "illegal" in the sense that it's something for which he could be arrested and put in jail; but it might be, let's say, "actionable" in the sense that it might be a basis for filing a private civil lawsuit for money damages IF you have suffered provable financial harm sufficient to warrant going to court to recover. Also, it's possible you might ask for and get an injunction to prevent him from bad-mouthing future sales or from making further disclosures of your business idea.

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Answered on 2/17/08, 12:04 am


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