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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10629
Experience:  30 years of corporate, litigation and international law
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I have a company who was my supplier of tel/com materials for

Resolved Question:

I have a company who was my supplier of tel/com materials for over 5 years. Though we did not have a written contract it is standard in our business that a supplier does not go after our clients to take them away from us. About a year ago this supplier decided to go behind my back and undercut me and steal my largest and only client away from me while still supplying me with materials. I just recently found out thwey did this. They havce taken hundreds of thousands of dollars in revenue from me and have pushed me to the brink of bankruptcy. Could you tell me what are my legal rights. Can I put a lawsuit to claim damages? Thank you.
Submitted: 7 years ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 7 years ago.
Did you provide your supplier with any confidential information about your clientele in the context of getting supplies from the supplier? If so under what circumstances was the information provided? If you did not, how did they learn who your customer was?
Customer: replied 7 years ago.
Yes I did. They knew of this customer for a while. It is one of the largest financial firms in the business. I was asked if I could get them (my client) patch cord materials on a constant basis. I asked several of my suppliers for costs of materials and CeComm was the lowest. I then approached them with the offer to supply my client with patch cords. They agreed that they would only do that and not try to take my cabling business away from me. They also do cabling and They are non uniopn and I am union so they could easily undercut me. But I have been doing business with them for many years and no supplier has ever breached the trust between us. Then a new boss went into CEComm and decided to undercut me. I did not know this so I still did business with them even though they were taking away my ability to pay them. I have lost thousands because of their breach of trust.
Expert:  Richard - Bizlaw replied 7 years ago.
Are any of these representations and promises in writing about not taking your client? Did you volunteer the identity of your client? Did they require the name in order to provide the patch cord?
Customer: replied 7 years ago.
Relist: I still need help.
Expert:  Richard - Bizlaw replied 7 years ago.
What you would need to prove in a court case is that you only disclosed the client to them because they agreed not to go directly to the client and circumvent you. Ideally this would be in writing but you can still sue on the basis of the oral agreement.

It is important that you did not disclose the client until after they made the agreement. On this basis the client identity is a trade secret that is protectable. All the claims you have flow from the fact that the supplier only knew about the client need because of your disclosure.

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This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.
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