Freedom of competition is a necessary and evident tenet in commercial relations. However, freedom of competition doesn’t permit companies to make use of unfair methods to harm a competitor, for instance, by diverting their clientele.

Among the most well-known unfair practices, we can mention disparagement, confusion, disruption, and free riding.

To establish the existence of such a practice, it is needed to prove that the competitor has committed a fault, caused damage, and that there is a causal link between the two.

In this context, the victim must commission a specialized firm to carry out preliminary investigations before initiating legal proceedings.

The lawyer, using the investigation report, will draft and submit a request (Article 145 of the Civil Procedure Code) to obtain an order authorizing direct investigations at the competitor’s premises through the intervention of a bailiff, an expert and law enforcement.

Then, legal proceedings will be initiated, the goal being to condemn the perpetrators of these acts.

Compensation

A legal action allows the perpetrators to be condemned to pay interest as damages. The principle is the full compensation for the prejudice, calculated on the day of the judgment.

The fees incurred (investigations, bailiffs, technicians) to gather evidence may be charged to the competitor condemned for unfair competition

Our intervention

To search for information and documents attesting of unfair competition, our specialized department has been collaborating during many years with lawyers and Commissioners of justice, formerly known as Bailiffs.

Additionally, our firm has a team of about twenty professional investigators located throughout the national territory.

Service agreement

For each mission, a contract is drafted, specifying the purpose of the mission, the methodology, the financial terms, and the timeline for execution.

Lead investigator

Your case will be handled by a dedicated lead investigator who’s going to be your only contact, in charge of coordinating and managing the investigations.

Investigation report

At the conclusion of the investigations, a detailed, thorough, and precise investigation report will be drafted. It may be presented, if necessary, before the competent jurisdiction.

Example &
Practical

The President of a company operating in the business consulting sector noticed a significant drop in revenue in South France. While the company had been maintaining relationships with certain clients for several years, some of them abruptly ended their contracts.

Concurrently, several employees resigned from their positions for personal reasons, causing disruption in the affected region. Questioning the causal link between the revenue loss and the employee departures, the company commissioned our firm.

Our investigations revealed that the three employees had been hired by the company’s main competitor, had copied the client database, and, upon being hired, approached their former employer’s clients.

Initially condemned by the Commercial Court, both parties eventually reached an agreement.

Additionally, due to a non-compete clause, the employees were ordered by the Labor Court to reimburse the non-compete clause compensation, which had been duly paid by their former employer.

case law

Five employees bound by a non-compete clause were hired by a new employer after resigning from their positions. The former employer brought the matter before the Labor Court, citing a breach of the non-compete clause, and accused the new employer of complicity in breaching the clause.

The courts declined to recognize the faulty nature of this mass poaching, as there was no evidence provided to demonstrate the disorganization of the company.
(Cass. Com. April 27, 2011, 10-16.618, 397).

A company acquired the activities of a real estate agency through the transfer of collaboration contracts with several sales agents. Some of these agents resigned and went on to establish two competing companies.

The courts ruled that the newly formed companies initiated their activities by using client records listed in the mandate register of the acquired company, thereby making the resigning employees guilty of unfair competition.
(Cass. Com. April 27, 2011, 09-14.098, 380)