Are you considering business litigation with a business partner or majority interest in your corporation? What is an unfair business practice, and why is this one of the most common elements in any business dispute or lawsuit in California?
3 Important Takeaways About Business Litigation with a Business Partner or Majority Interest and Unfair Business Practices:
- Litigation with a current business partner, shareholder, majority interest, or even a former employee can be personally and professionally quite challenging. You need an experienced business litigation attorney who will provide insight, sound advice, and proven strategies to protect your interests and accomplish your objectives.
- Unfair business practices are alleged in the vast majority of business related disputes and lawsuits.
- Unfair business practices covers a broad spectrum of behaviors, usually involving some form of deception or fraud, and a person who is in authority over another or who has violated or misappropriated trade secrets.
Unfair Business Practices Lawyers
The unfair business practices lawyers at the Watkins Firm represent San Diego and California investors, shareholders, employers and business owners in a business litigation with a business partner or majority interest, even a former employee who has taken trade secrets in order to compete against you. We work to resolve the dispute quickly and in a cost-efficient manner while protecting your vital business interests.
California’s unfair competition laws extend to the use of proprietary information which is not “public” in nature. In other words, if a former employee, executive, business partner, member or shareholder takes information from your company which is not available to the general public and uses it to compete against you we can help to put a stop to it in many cases.
This extends to deceitful acts, fraudulent representations or deceptions as well as coopting your company’s business resources, website(s), information, processes, formulas or intellectual property to compete against you or cut you out of the equation.
Misappropriating trade secrets, company proprietary information or intellectual property is a violation of California’s unfair competition law. Our seasoned business dispute attorneys have extensive experience, legal skill and strategies in these matters based upon decades of service to the San Diego business community representing them at trial and every potential alternative dispute resolution venue.
Pro-Tip: “What might an unfair business practice include? A better question is what would not be an unfair business practice? Because it seems to be in every lawsuit that we defend, you sue someone for sexual harassment, you’re going to get sued for unfair business practices. You sue them for any type of fraud in the business arena, you’re going to get sued for unfair business practices. You sue them for unfair competition, there you go, you’re going to get sued again, under our Business and Professions Code section seventeen thousand two hundred and seventeen thousand five hundred. And there in between, there are many, many laws talking about what’s unfair and what you can sue for. And it seems to cover everything. It seems to be included in almost all lawsuits, and it has an attorney’s fees clause.
Look at it from two perspectives. If you are being sued by like someone you’re dealing directly with and they say, ‘well, what you’re doing is gaining an unfair business practice over me, you’re violating my rights,’ that’s a direct unfair business practice. If the person across the street is in business and it’s similar to yours and they’re doing things that are affecting your business to their advantage and your detriment, that could be an unfair business practice. So as broad as it is, and as big many large examples as it has, it’s important to see your lawyer at the Watkins Firm. When you’re in business and you have contracts, this is a big way people get in trouble. They put things in their contracts that are deemed to be an unfair business practice. And those can be anything from how they price, how they pay their employees, how they advertise, how they labeled their products. All those things can turn into unfair business practices and a cause of action. And you’re getting sued.
How extensive of a bucket is that fraud and unethical conduct? It’s pretty widespread. I mean, those are strong words for describing it. I don’t think you have to use unethical or that those are words we use for an actual fraud cause of action in unfair business practices. It’s more of a, ‘what was the effect of your action? Were you accurate in your representations? Did someone detrimentally rely on something you did say or said to their detriment? And were there any other statutory violations that you committed in the context of whatever contractor agreement you have that would make it unfair to whoever you’re dealing with or to your competitors?’ And the way you do business, if you don’t pay your employees their legal employment taxes and you don’t take out withholdings and your competitor does, they’re going to say it’s not fair. Right? You don’t have to follow the law. And I do. So how do I compete? Unfair competition.
Misuse of power is another example of I have power over you in one form or another and I’ve abused that privilege. How does that come into play in these types of actions? When you have superior negotiating position and you enter into an agreement or a relationship in business and it turns out that you’re getting an unfair advantage over it, in addition to the unconscionable, unfair fraud cause of action, you’re going to get this unfair business practice cause of action. And it’s going to say that the terms of the contract should not be held against me. And you’re going to get a list of about 12 causes of action and one will be this unfair business practices option. And if they can make that stick, then they not only get the substantial financial damages they seek, they can also get all their attorneys’ fees.” – Dan Watkins, Founding Partner
Resolving Business Litigation with a Business Partner or Majority Interest
Resolving business litigation with a business partner or majority interest requires experience, legal skill, and proven strategies. Watkins Firm can take immediate action to put the party or parties on notice requesting an immediate cessation of these practices. We represent clients through aggressive negotiations which let the other party know that you are aware of the misappropriation or misuse of proprietary information or intellectual property and intend to enforce your rights. In some cases mediation and/or arbitration may serve as a productive alternative to litigation as we seek to find common ground and a resolution to the unfair competitive practices of these former associates.
Cases involving fraud and unfair business practices may provide additional relief in the form of punitive damages and attorneys fees. If you are involved in a dispute with a former employee or business partner and are looking for experienced aggressive attorneys who will assert and protect your interests invite you to review our podcast Episode 25 – Unfair Business Practices as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
Meet Dan Watkins:
Daniel W. Watkins is a true people person who sincerely listens. He cares deeply about what others are going through. Dan enjoys digging into the facts and finding creative solutions to problems. He contributes his insights candidly and constructively.
Dan’s interest in people make him deeply invested in every relationship and his exuberant personality makes him a true litigator. Dan fights for his clients with a fierce and calculated commitment.
Dan has practiced in the areas of business, medical practices and healthcare business, high tech/science, real estate and employment defense law since 1987. He is a trusted litigation strategist and true trial attorney with over 50 jury and bench trials to his credit. Dan has successfully represented both large companies and individuals and achieved substantial victories in well-publicized trials throughout California and the U.S.
He is experienced in business and corporate formation and administration, as well as all forms of alternative dispute resolution, including binding arbitration and mediation.
THE ROAD TO BECOMING A BUSINESS LAWYER AND LITIGATOR
Dan has almost 40 years of experience working with, for and against some of the largest insurance companies in the country. He has successfully tried and litigated cases in the areas of Healthcare Compliance, Commercial Litigation, Unfair Business Practices, Fraud, Breach of Contract, Battery, Premises Liability, Product Defect, Medical Malpractice, Discrimination, Sexual Harassment, Construction Defect, as well as Unfair Competition, Defamation, and Trade Secrets.
In December 2003, Dan commenced litigation against Health South Surgery Centers-West, Inc and its’ subsidiaries, exposing the company’s extensive mismanagement and misconduct of its’ surgery centers. Dan has also been asked by some of California’s largest municipalities and corporations to conduct legally required investigations into matters involving alleged employment discrimination and harassment.
