Legal Question in Business Law in California

I am in the state of California, where I have been employed by a company for 1 year, and was let go, due to the fact that I have a business name, and website. Since 2007 while living in the state of Minnesota and Illinois, I have obtained a fictitious business name, and license to operate. In 2009 I did the same. I started employment with my former employer in 2010, I was impressed with the company for all of about 60 days and figured I wanted out. I gave my notice to terminate on 01/27/2011 and was released on 02/02/2011 after my employer found out I had a website. Prior to my decision to leave a client of theirs stated if I ever left they would be willing to go with me. The client gave their notice to terminate, and now the former employer has contacted the client and has threatened to sue me if the client contracts with me, thus the client has decided to stay with the former employer. Is there any basis for a suit against me? I have been in this line of work for over 13 years, and gained nothing except employment, what are my rights.


Asked on 2/10/11, 5:44 pm

2 Answers from Attorneys

You are in a very tricky and highly litigated area of the law. There is no way to have any idea whether their suit would have merit based on the brief facts you laid out. What I can tell you is you have no remedy for them threatening suit if the client stayed with you. Such threats are pretty much universally privileged.

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Answered on 2/10/11, 5:50 pm
Terry A. Nelson Nelson & Lawless

Reality? Anybody can sue anybody for anything. Winning is a different question.

Many companies will issue such threats to scare you off, even if they know they can't win it. They know suing you will force you to spend attorney fees. If you actually 'unfairly compete' with them in violation of the CA laws on such matters, they could have basis to sue you. A full analysis of all the facts and issues is necessary before anyone could give you an informed opinion of the likelihood the company could win such case. If serious about getting that consultation, feel free to contact me.

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Answered on 2/11/11, 12:31 pm


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