My Landlord Stole My Business

Greg practices in the areas of civil and commercial litigation, arbitration, and appeals. He has represented individuals, financial institutions, and commercial enterprises in a variety of commercial, construction, landlord-tenant, employment, financial, insurance, and real estate disputes in state and federal trial courts.

Greg is currently the Treasurer for the El Paso County Bar Association.  He previously served as Chairmen of the Board for the SET Family Medical Clinics. Greg enjoys hiking with his children, cycling, and following his favorite sports teams – the Colorado Rockies and Nebraska Cornhuskers.

 Could this happen to you?

MY LANDLORD STOLE MY BUSINESS!

In Colorado, the tort of misappropriation of business value prohibits the use of another’s expenditure of labor, skill, and money for their own benefit.  This tort is also sometimes characterized as unfair competition or deceptive trade practices.  The classic case in Colorado addressing the law in this area involved the "Denver Gift and Jewelry Show" which was held at the Denver Merchandise Mart.[1]  In this case, the plaintiff/tenant negotiated a lease with the Denver Merchandise Mart (the “Mart”) which allowed it to hold the Denver Gift and Jewelry Show at the property twice a year. The tenant had an option to extend the lease, but it failed to exercise the option on time. After the tenant’s rights expired, the Mart held and promoted its own gift and jewelry show. At trial, the tenant established that it spent significant time and money in promoting and planning the show. The evidence showed that after the Mart began running its show in 1986, it used the tenant's advisory committee, floor plan, fee structure, seniority system, and program format. The tenant was entitled to recover the greater of its lost profits or the profits earned by the Mart and other statutory damages.

There are many situations where the misappropriation of business value may arise. One example would be an employee who uses his former employer’s goodwill and systems that the employer spent time and money developing to compete against the former employer. In this situation, the employer may have a claim against the employee for misappropriation of business value even in the absence of an enforceable non-compete agreement.

Disclaimer: The foregoing discussion is not intended to constitute legal advice but is provided solely for informational purposes. You should consult with a competent attorney regarding any of the issues discussed herein.

©2015 Gregory M. O’Boyle.  Gregory M. O’Boyle is an attorney licensed to practice law in the state of Colorado with the law firm of Alpern Myers Stuart, LLC, in Colorado Springs, Colorado. Mr. O’Boyle practices in the areas of civil and commercial litigation.  He can be contacted at (719) 471-7955.