QUESTION

35% LLc Partner started competing llc and stealing client billing info without letting client know and current llc paying bill to run client campaign

Asked on Sep 19th, 2017 on Litigation - California
More details to this question:
have a business partner for a California llc that has started a competing llc and stealing customers billing info . They are not telling customers they will be billed buy a new company and the current company is still running clients account without compensation, the compensation/payment information has been moved to partners new llc. The llc partner is one of the 3 partners and combined he owns a minority stake. This issue is in California.
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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Standard-Operating-Procedure would be to have a lawyer send him a cease-and-desist letter. I have never heard of one working in this situation. The most you might get would be some excuse, like these were not clients of the company or had already decided to leave the company, because they did not like working with you or the third partner. The lawsuit will take at least a year and be very expensive. You will spend $20,000.00 or more before you are at the stage where you can have a meaningful mediation or settlement conference. You should start by contacting all the clients directly, on the phone, to explain what has happened and get them back. If that doesn't solve the problem, then all you can do is sue. Just the fees to the court and the services to get the complaint filed and served will be about $600.00. Preparing the summons and complaint will cost $1500-$2000. A very aggressive approach would be to seek a temporary restraining order that he stop doing business with the company's clients and stop soliciting its clients. The chance of success is better than fifty percent, but not much better. You would be asking to give you now the remedy that you aren't really entitled to until after a trial. That motion would cost $4000-$6000. However, if you won that motion, it would likely lead to a quick negotiated settlement. Dana Sack
Answered on Sep 19th, 2017 at 10:11 AM

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