Legal Question in Business Law in California

Re: Can a large company black ball you?

You can sue the larger company for interference of contract and prospective business advantage.

Re: Can a large company black ball you?

You bet you have rights. In California if you have an agreement with someone to supply you with goods and someone interferes with that contractual relationship, then the party who interferes with that contractual relationship is liable for damages. Those damages would be the lost profit that you have a right to but more importantly potentially Punitive Damages for intentional interference with contract. You need a very good business lawyer/litigator who understands these claims. There is a lesser kind of claim that wouldn't carry with it punitive damages but just interferer with economic advantage. I can see at least five or six additional different claims that you may have. Be prepared that if you file suit you will have a suit filed against you. The question is though what is the basis of their claim against you. You must sit down with an attorney and give them all of the facts applicable to your prior job and your new business. The attorney, he/she after asking numbers of questions will be able to tell you what your rights are applicable to their clients. I have been successfully practicing law in the San Francisco Bay area for over 30 years. If you wish to consult with me I will be more than happy to meet with you. Please call me at 925-945-6000.

Re: Can a large company black ball you?

Intentional Interference with Economic Opportunity would be a proper lawsuit.

Re: Can a large company black ball you?

Question 1. Why did you let them take back the inventory you already paid for?

Without further review of the facts, assuming them as you have described, yes you have legal rights, yes your former employer has broken the law, yes you have a valid lawsuit against both other parties.

Here is your problem, is the manufacturer going to be a witness in your favor, my guess is probably not, especially if thet are named in the suit. Since this entity is already backing off of your new company, it is unlikely that they will agree to testify or sign any document that will hurt their relationship with your former employer.

As a general counsel, I dealt with a similar case in the past. We spent a large amount of money chasing after almost the same issue. Unfortunately, when push came to shove, the vendor reopened our line but we received nothing as far as compensation.

In a "nut-shell"; yes you have the right to sue for lost profit (to all), intentional interference of your buiness relationship (prior employer), breach of contract (as far as the vendor), among others, but I suggest you first weigh the cost of litigation with the amount of possible recovery.

As with most of the other attorneys here, I would love to assist you with your problem, but I am not sure it is a cost effective business decision. Please feel free to contact me to discuss the matter further at (626) 578-0708 or online at CorporateProtectionServices.com