If an old client is contacting my customers and is getting them to cancel my services, what can I do?

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If an old client is contacting my customers and is getting them to cancel my services, what can I do?

I had a bad experience with a client at the start of this year. He publicly defamed my company on Facebook. I warned him against this and he deleted his post. He later contacted a new client who had started with us and convinced him to pull out of a contract he had already signed which ended up costing me time and money. I sent him a cease desist letter and thought that was the end of it. Until this week we were contacted by another business through the Facebook network the owner told me this was how he found us then a few days later he started to back out until now he says he does not want to go ahead. I then told him about our past experience with a person in that group and asked him if he was contacted by this person and he did not answer. Yet, my experience of telemarketing told me he knew exactly who I was talking about. It’s clear now that this past client intends to continue to do damage to my business and despite my warnings it seems his intent is to continue to do so. I could not do anything about it if as a company we actually did anything wrong to this guy. However, I was recommended to him by an existing client and I explained to him that we require payment in advance for work and he agreed. Yet, he never paid on time and when he found out we were mothballing his work he then started this campaign against us. There are only 2 of us. So this is quite devastating

Hope you can help.

Asked on July 14, 2016 under Business Law, Indiana

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You can sue your former client for interference with existing contract, inducing breach of contract, and disparagement.  Disparagement is defamation against a business.
Interference with existing contract, inducing breach of contract and disparagement are separate causes of action (claims) in your lawsuit.
Your damages (monetary compensation you are seeking in your lawsuit) would be lost income.


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