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I was a partner in a co. They paused doing business saying they could not pay me any more and I opened up another co with same name(inc in Colorado) and contacted past prospects(not clients) and started getting business from them. They were not clients until after I started. I used some of the same forms and cotracts to get deals done. Ex Partner had asked me if I was contacting old prospects and I told him no. He found out I was and is saying I am guilty of fraud and is going to take legal action. I did not have a non compete or any other agreement.
Optional Information: Country relating to Question: United StatesState (if USA): Pennsylvania
Hi, Troy, and Welcome to JustAnswerMy name isXXXXX am a Pennsylvania Licensed Attorney and would be glad to help
If you did not sign any Non-Compete Agreementm or any other type of Agreement which would restrict your doing business with certain people, or within a certain, defined geographic area, they cannot prevent you from conducting your business with prospects of the former company. In fact, you would not be prohibited from soliciting even clients of the former company.
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ANDREA
My question is also about my new co with same name and using some of the same forms. Is that ok?
My apologies,
1. Was the name of the company registered as a 'Fictitious Name" or Doing Business as _______ ?
2. What kind of forms, who drafted the forms, or were they standard forms that you can buy at a stationery store ?
3. Where did you get the forms ?
Fictitious name. Lllc. They are a DE llc Forms were produced and used by both of us. Each one has some common language but each client also gets a unique write up. It was on letterhead with logo inadvertantly but nothing is trademarked either.
Thank you for your additional information,
1. Under Pennsylvania law, if a fictitious name is XXXXX XXXXX an organization, it cannot be used by another party, even though the other party was associated with the organiation and even though the organization ceased doing business;
2. I cannot say about the content of the forms because I would have to review all forms which you are using and compare them with those used by the LLC. I do not believe you would be able to use the forms, however, because using the name of the LLC in combination with the logo would be considered deceptive business practices. This remins true even though the logo was not registered. The fact that you took part in preparing the forms does not permit you to use them in your business because they were created while you were associated with the LLC and it was their property.
They are saying they would call the police because it is fraud. I can't imagine it is right. Would it be illegal? What would their recourse be?
They are saying they would call the police because it is fraud. I can't imagine it is right. Would it be illegal? What would their recourse be? The amount of money involved is $4,000.
1. The police would not getinvolved. If they go to the police and report the same facts as you stated here, the police will tell them that it is a "civil matter" and they do not get involved in civil matters;
2. Their recourse would be to file a lawsuit against you and seek an injunction, enjoining you from using the name of the LLC and its logo. I cannot say anything about the content because as I said in my previous Answer, I do not know what the forms say. They can also ask for an accounting and allege that all revenue you derived in your company was the result of the use of the name and logo of the LLC and demand judgment in the amount of the revenue you earned,