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I purchased a business license while working for a company that is now a direct competitor. They are threatening legal action, but they shorted me on my last paycheck, saying that I borrowed money to be repaid, which I can prove never happened.Also, they have called all of my former clients and told them not to work with my company. I have a client willing to submit a sworn statement, but I do not want this to go to court, as they can tie up what little startup money I have in court. What do I do?

Asked on July 3, 2009 under Business Law, Oregon

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

If you aren't prepared to go to court, there really isn't much that you can be sure of doing.  You can hire a lawyer to answer their lawyer's threatening letter and threaten them back, but they can still sue you, and if they ignore your threats about their interference with your business, the only thing you can do about it is sue them.

I think what you need to do next, is have a competent business attorney in your area review all of the facts, the ones that are helpful and the ones that are inconvenient, for reliable advice about how to handle all of these issues.


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