Legal Question in Business Law in California

theft of proprietary info

I was looking at buying a business and the owner did not want to commit to a set amount for a certain amount of inventory. I was in negotiations but never signed anything. He freely told me what I should do if I decide to buy the business. We then threw amounts back and forth, although never settled on a set price.(again). I tried to look through their books which they did not have and then the owner calls me and gives me an ultimatum, so I said I did not want the business, and opened my own. I carry some of the same lines as him however so does every other shop in town. Now he is sueing me for $5000.00 for theft of proprietary information and breach of contract. Is this idiot got something for me to worry about?

Thank you

Shane Thompson


Asked on 5/02/04, 11:44 pm

4 Answers from Attorneys
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: theft of proprietary info

Any time you are served with a summons you need to answer and defend the case. If it is not in samll claims court call me directly at (619) 222-3504.

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Answered on 5/03/04, 12:09 pm
Robert Restivo Restivo Law Firm

Theft of proprietary info

Howdy:

Proprietary information would include customer lists; or specific, unique methods of manufacture. Inventory isn't proprietary, nor are suppliers.

But, as mentioned, be sure to answer the complaint. Otherwise, you lose, even if he _is_ full of crap.

Good luck.

rkr

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Answered on 5/03/04, 5:50 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: theft of proprietary info

Your posts should be anonymous. Anyone who is sued should have something to worry about. You should get together evidence that other businesses carry the same lines and do the same kind of business, and there's nothing proprietary. You might want to consult with a lawyer to assist you in defending this lawsuit. If there was no confidentiality agreement, it would be interesting to know upon what legal theory he's basing his (apparent) small claims lawsuit. He's probably just angry that you didn't pursue the purchase.

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Answered on 5/03/04, 2:18 am
Michael Olden Law Offices of Michael A. Olden

Re: theft of proprietary info

Interesting, this is the amount necessary to sue in Small Claims Court. Therefore, it is he verses you without any attorneys involved. The problem I am concerned about is whether or not this man in actuality has expertise far beyond yours. He may have lured you into some form of "trap" applicable to a fictitious purchase. Maybe he was just trying to set you up. My immediate advice is see an attorney. Should you worry about the lawsuit, you should at least be concerned about it and see that you can rectify the problem if there is one. Rather than give a minimal amount of information tool computer screen should sit in front of an attorney said he/she came to all the facts to give you good advice.I have been practicing law in this legal area for over 30 years and understand your problem well. I practice in the S.F. Bay Area and if you wish to contact me call at 925-945-6000.

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Answered on 5/04/04, 2:32 pm


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