Legal Question in Business Law in Pennsylvania

Large damages

In 2002, two of my most senior employees, one an officer of the company, and unbeknownst to me, had started their own competing company while still in my employ. 20 months ago, I discovered that they utilized and contacted every customer my company had the same as soon as they started their company, utilizing our customer lists, pricing etc. My $3million company had to close its doors while they are successful. They even contacted some of our clients while still in my employ. I looked at their website and they even have some of my companies actual work on their(photos). 90%of their clients were ours. They also did work with our clients as soon as they started their own company. I know thier ledger mirrors what my company's was just in their first year. long story short, it's NOW very easy to prove as well as damages and i know they went down our list and solicited every customer on it. we did not have noncompetes but this seems like a blatant trade secret act violation. They were even incorporated 1 week after being fired; its on the record. Do I have a case? Thanks


Asked on 5/18/07, 9:55 am

2 Answers from Attorneys
John Gibson John W. Gibson, Esquire

Re: Large damages

Although customer lists are generally considered trade secrets in Pennsylvania, a lot depends on the type of business because if the names and addresses on the list are readily available through other means, then a court may not consider such a list a trade secret.

I think there are a few other theories of recovery here, though. One may be intentional interference with contractual relationships, another may be for breach of contract if there were employment contracts, another may be for breach of fiduciary and common law duties, and I think the clearest one would be for unjust enrichment if you can quantify special damages.

All in all, it sounds like you have a case. You should know, however, that these types of cases are hard fought and if the other guys are doing that well in your business, your own lawyer is going to get swamped with paperwork from a large lawfirm and will have to bill accordingly.

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Answered on 5/19/07, 11:49 am
John Jackson Law Office of John A. Jackson, P.C.

Re: Large damages

From your facts outlined above you may have a good argument for breach of trust or fiduciary duty. I suggest that you conact an attorney and set up a consultation. I or another one of the attorneys that post here would be happy to help for a fee, of course.

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Answered on 5/18/07, 10:04 am


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