Legal Question in Business Law in Massachusetts

We Bought a Route and Now the Seller Has it

I'm in the drycleaning business and 4 years ago bought a pick-up and delivery service, in which the seller remained on, servicing the route. He abruptly quits, without notice and we are learning, that 20 percent (and rising) of our customers have left. We also learned within a week of his quitting they have gone with him to another drycleaner. We also learn that 2 weeks before his quitting he was soliciting our customers for the conversion. Since we bought this route from him and he commented, to another driver, that he ''was only going after his customers''...do we have any recourse?


Asked on 3/19/04, 10:31 pm

2 Answers from Attorneys
Lawrence Graves Coolidge & Graves PLLC

Re: We Bought a Route and Now the Seller Has it

Likely you have remedies. This should have been covered in the purchase agreement, but even if it wasn't you can state a number of possible claims (e.g., unfair and deceptive trade practices, fraud, misappropriation of confidential information).

Best wishes,

LDWG

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Answered on 3/20/04, 1:09 pm
henry lebensbaum Law Offices of Henry Lebensbaum (978-749-3606)

Re: We Bought a Route and Now the Seller Has it

Maybe:

Did you have a non-compete agreement signed?

Or you can file a tort action for interference with economic advantage. You must weigh the cost of any litigation with its benefit.

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Answered on 3/20/04, 10:35 am


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