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Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman, Lawyer
Category: Legal
Satisfied Customers: 2174
Experience:  Practicing Attorney with 10 years experience
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2 people own a S corporation (auction co.) and one partner

Customer Question

2 people own a S corporation (auction co.) and one partner secretly starts a new business by removing one word from the name and is the same exact type of business in the same town, within 5 miles. The partner who secretly started this business pretended to still work for the original business for a month and a half and the clients that came in he booked for his new company and point blank lied to his partner saying they didn't have enough to have a sale or didn't call back. He has also stolen the checkbooks from the original company and won't bring them back. He is keeping the original company hostage while he spreads lies and tries to steal all of the sales he can from the original. Is there any legal action we can take?
Submitted: 1 year ago.
Category: Legal
Expert:  Asad Rahman replied 1 year ago.
Yes absolutely you have a number of claims you can pursue. Breach of contract, civil theft, breach of a fiduciary duty, fraud, tortious interference among others. He does owe some duty to the original conpany. Even if there is not a specific noncompete clause he still has a fiduciary duty to the original company.
Customer: replied 1 year ago.
Thank you that helps alot!
Expert:  Asad Rahman replied 1 year ago.
Sure. A positive rating of the assistance would be appreciated as we only get paid for positive ratings.