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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9667
Experience:  I have been practising for 30 years.
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A company is passing itself off as ours and has cost us a

Resolved Question:

A company is passing itself off as ours and has cost us a substantial amount of money. What can we do?
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.

Can you explain the situation here in more detail please?

Customer: replied 1 year ago.
In 2010 I summarily sacked a director and 45% shareholder for selling company products and pocketing the proceeds. My company was taken to tribunal but our solicitors agreed before court that I would pay £7000.00 for the 45% and again become a 100% shareholder. At this time the 45% was worth approximately £100,000.00. The errant director already had a company called Pegasus Developments,incorporated after joining my company Pegasus Industrial Products; also among our companies are Pegasus UK Ltd and Pegasus Diamond Ltd plus other dormant Pegasus companies. Agreed and signed during our solicitors meeting was that the director would change the name of Pegasus Developments to Peg Dev to avoid confusion with ourselves and could not trade under any Pegasus name. Within one month he had contacted our customers telling them to pay Pegasus Developments.We have suspected for years that he has traded us our name and passing off our products. Yesterday we had an e:mail in error proving this to be the case. We estimate that it has cost our company between £500,000.00 to £1million over these years.
Expert:  F E Smith replied 1 year ago.

I would suggest that you got your current solicitors to write to his solicitors reminding them of the terms of the earlier agreement and telling them that their client is not only failed to change the name as agreed, you have evidence that he is now passing off as your business and that the estimate of your loss incurred as a result of this passing off is what it is

You require him to immediately cease trading in any way which would even remotely be confused with your various Pegasus companies. You require him to account to you for any products which he has sold as a result of the trading style, the names of customers, suppliers, et cetera et cetera and failing a satisfactory response by close of business next Friday, you will then make an emergency application for an injunction to make him cease trading and to freeze his assets the solicitor will know exactly what to say if you don’t have that response by next Friday, on the Monday, you make the application to court.

Because of the magnitude of the problem I would not suggest that you wrote yourself but going with solicitors guns blazing.

The letter could either be sent to the culprit and copied the solicitor or sent to the solicitor and copied to the culprit.

You would normally ask the culprit does he want to instruct solicitors to accept service of proceedings and ask the solicitors whether they are instructed to accept service of proceedings.

Can I clarify anything for you?.

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We can still exchange emails.

Best wishes.

FES.

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