Legal Question in Business Law in Georgia

I was in the process of starting a pressure washer sales and service business when I contacted a company that provides Lease Purchase financing to potential customers. In the pre-application process, which was done over the phone, a representative from this company asked me several proprietary questions, one being about my experience in pressure washer sales. I informed him that I was a salesman for "so-and-so". The Lease consultant did business with "so-and-so" and told me that because "so-and-so" was a long-time customer, he would not do business with me; which I felt was his choice. However, five minutes later the owner of so-and-so called me asking questions about information that I had provided to the lease consultant. A few minutes after that, my supplier called me and said that so-and-so called him asking if he was selling pressure washers to his employee.

Because the Lease consultant gave away privileged, proprietary information such as the fact that I was starting a business, my supplier and the nature of my business, rent-to-own. I feel like he put me at a competitive disadvantage. There is no one that I know of who is renting-to-own pressure washers. Additionally, the opportunity is there for so-and-so to prepare for my entrance into the market, especially since he knows who my supplier is and the nature of my marketing.

I called the principle of the lease consultant to complain about what I considered unethical business practices and his response was: We've been doing business with so-and-so for over 12 years.

Can I be successful in a suit against this company although I have not suffered actual monetary damages yet.


Asked on 1/14/13, 6:17 am

2 Answers from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Unless you had him sign a written non-disclosure agreementy before you talked to him, no.

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Answered on 1/14/13, 6:28 am
Scott Riddle Law Office of Scott B. Riddle, LLC

The information you provided is not generally considered "proprietary" unless it is defined in a confidentiality agreement. They have no legal duty to you. If the supplier has a confidential relationship with anyone (which we don't know), it is their current customer. In the application process, you choose to provide information in order to do business with them and that is the risk. It is understandable that you are unhappy with the situation, but that is the reality of business. For future transactions, make sure you know the confidentiality procedure of the other party (in writing) and assume anything you disclose is public information.

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Answered on 1/14/13, 6:44 am


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