Legal Question in Business Law in California

Re: stealing clientel /business from a dance studio

A lawyer would file suit against them for stealing your clients. However, it could become costly. Try to figure out the value of the business you would have had if you had kept the clients and/or how much the list is worth.

Re: stealing clientel /business from a dance studio

You potentially have multiple causes of action, including under California law, a cause of action for "unfair business practices." Even absent a non-compete contract with your former employees, they may have misappropriated company "trade secrets." This is a valid claim under California law and you would be well advised to speak with an attorney regarding this matter.

Re: stealing clientel /business from a dance studio

Taking a former employer's customer list is an example of "misappropriation of trade secrets" under the California version of the Uniform Trade Secrets Act, codified at Civil Code sections 3426 to 3426.11. You can find it on line.

In order to win a misappropriation case and get an award of money damages, you would have to show that you made some effort to keep your customer list confidential (for example, if you had a dance club or contest and publicized the names of your clients through widely-mailed fliers, you might not have a case) and that the names were a valuable asset and not readily found from other sources such as directories.

You may also have to prove damages - note that section 3426.3 allows an award of damages based upon your actual loss, or for the amount by which the defendant was "unjustly enriched,"i.e., his profit; or, failing these, you can be awarded a "royalty" representing the judge or jury's estimate of the list's value. You can also get punitive damages. Note also that 3426.4 allows a prevailing party to recover attorney fees in some cases, maybe yours.

You should have one or more initial free consultations with business lawyers. During the interviews, you should satisfy yourself that the lawyer or firm has some knowledge of, and prior experience with, the Trade Secrets Act; also get an idea of attorney fees in relation to likely recovery.

You didn't give your city or zip code, but if you're near me contact me for a quote.

Re: stealing clientel /business from a dance studio

Based on your facts it would appear that the former employee has used your customer lists to steal business. California law gives trade secret protection to customer lists. Thus, looks like a misappropriation of trade secrets.

There are several other legal causes of action that can be alleged against them including but not limited to breach of duty owed to employer, unfair competition, etc.

However, there are some defenses to this such as that they were not specifically targeting your former customers but simply papered the whole area with flyers which included your customers.

One of the important points, however, in pursuing this matter is that it can get to be very expensive. Collect all your documentation and seek a local attorney.

My guess is thatit is not likely that you are going to find an attorney to take this on a contingency basis. Thus, you are probably going to have to pay on an hourly basis.

I would be happy to discuss this matter with you.

Caleb

Re: stealing clientel /business from a dance studio

The other replies are correct, that it sounds like a violation you could pursue, if the provable damages are enough to warrant spending the money it would cost. Depending upon the facts, an attorney MAY be willing to consider some form of partial contingency arrangement. The only way to know is to discuss ALL the facts with an experienced attorney. Feel free to contact me if interested in doing so, and if you are in Southern California.