Legal Question in Criminal Law in California

Let's say I work at a restaurant supply business in California and, due to my job, have a lot of knowledge of the restaurant business environment in my town. I have an idea for a new business (a restaurant) and, with my employer's full knowledge, am making plans to open one. Recently I received a call from a businessman who spoke to me in my capacity as a restaurant supply employee and told me about his plans to open a restaurant in my area. He freely told me his business plans and trade secrets after some probing questions from me. His ideas are very similar to mine and, if I were to proceed and open my restaurant, I would be his direct competitor. The information he disclosed could potentially give my business the edge were I to proceed and open my restaurant. I assume if I do nothing and don't proceed with my business plans, no harm has been done. If I do proceed, there might be some sort of civil liability. My main questions is: if I do proceed and open my restaurant, would I be committing a crime? What crime? Thank you!


Asked on 4/18/12, 12:44 pm

1 Answer from Attorneys
Theresa Hofmeister Theresa Hofmeister, Attorney At Law

this almost sounds like an essay hypothetical to me ... but in the event it's not, I'd say if this other person did not have you sign a Non-Disclosure/ Non-Compete Agreement and volunteered info (whether in response to 'probing questions' or not), there may not be much that can be done to stop you from using the information to your own advantage. I don't see any crimes in any case; at most it would be a civil issue and maybe a "moral issue." Good luck.

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Answered on 4/18/12, 12:51 pm


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