Do I have standing for a Federal Discrimination Lawsuit?

[Steve5877]

What is the name of your state (only U.S. law)? I live in NJ. I own a small start-up software company. I do all of the business analyst work and most coding. For a few small parts, I've had programmer friends help me out.

I have a single client who is the owner of a small but very successful business and has also been backing me to some extent. He is also politically very conservative and racist.

Recently, I needed help with security and I brought in a friend from a different job who is excellent. My single client discovered that I was working with someone of a different religion and threatened to cancel our business. I was considering hiring this person if the work expands as expected. Losing this customer would effectively end my company as I have no other capital to invest at this time.

Do I have the basis for a law suit? I feel as if he is pressuring my company to do something that is illegal by asking me to agree in writing to not work with this person. He is Muslim, and that is the only reason.

 

[LdiJ]

What is the name of your state (only U.S. law)? I live in NJ. I own a small start-up software company. I do all of the business analyst work and most coding. For a few small parts, I've had programmer friends help me out.

I have a single client who is the owner of a small but very successful business and has also been backing me to some extent. He is also politically very conservative and racist.

Recently, I needed help with security and I brought in a friend from a different job who is excellent. My single client discovered that I was working with someone of a different religion and threatened to cancel our business. I was considering hiring this person if the work expands as expected. Losing this customer would effectively end my company as I have no other capital to invest at this time.

Do I have the basis for a law suit? I feel as if he is pressuring my company to do something that is illegal by asking me to agree in writing to not work with this person. He is Muslim, and that is the only reason.

If you sue him, you will definitely lose him as a client. No judge could order him to continue to use your services after a lawsuit.

You really need to work towards expanding your client base so that you are not relying on one customer to keep your business afloat.

 

[quincy]

What is the name of your state (only U.S. law)? I live in NJ. I own a small start-up software company. I do all of the business analyst work and most coding. For a few small parts, I've had programmer friends help me out.

I have a single client who is the owner of a small but very successful business and has also been backing me to some extent. He is also politically very conservative and racist.

Recently, I needed help with security and I brought in a friend from a different job who is excellent. My single client discovered that I was working with someone of a different religion and threatened to cancel our business. I was considering hiring this person if the work expands as expected. Losing this customer would effectively end my company as I have no other capital to invest at this time.

Do I have the basis for a law suit? I feel as if he is pressuring my company to do something that is illegal by asking me to agree in writing to not work with this person. He is Muslim, and that is the only reason.

No. There is no basis for a law suit in what you are describing. The client is allowed his prejudices and you are allowed to find a client that will not try to control who you hire.

 

[Steve5877]

No. There is no basis for a law suit in what you are describing. The client is allowed his prejudices and you are allowed to find a client that will not try to control who you hire.

Feels wrong that he can do that, but your explanation sounds correct.

So here are some particulars about our "deal".

1. Client is an uncle, and no written contract was ever created. (STUPID STUPID STUPID)
2. As part of our agreement, he paid me to develop the software. At first, he sent me 1099's. After a year, I formed an LLC and sent him invoices. He paid me approximately 1/3 the normal contractor rate. I was laid off and had knowledge as a hobbiest but lack of experience I could put on a resume, so I agreed to the low rate. In part because of the low rate, the client agreed (and still agrees) that I have the right of co-ownership of the software, which I can re-brand, customize and sell.

The software is for a web application, which I run for him as a website he and his employees can access. It is hosted as a subdomain of my LLC's website at no additional charge to him. I also give him occasional minor revisions at no charge. In addition to what he paid me (~60K over three years, half the first year when I was unemployed), I was supposed to get ASSISTANCE in marketing the product. He is an expert marketer in both creating copy and in that he has extensive targeted email lists and a reputation within the target market, so his assistance is no small thing.

He has asked me in writing to send him all work product and remove all of his company's data, branding, etc. from my systems with the exception of course that he wants the web application to remain running until he can find someone else to host it. Fine, no problem from me. I could argue its not "work product" since he hasn't sent me a 1099 in 2 years, but it was part of the agreement. Fortunately, he reaffirmed my right to resell the software in that same letter. However, while I am upholding all of what I agreed to in the original agreement, he has decided he will not put his reputation on the line with someone who works with Muslims (he said that in a text). I've invested over 1000 hours beyond what he paid me in order to have a marketable product. Other then lying to him (and signing an agreement) that I will not hire Muslims, is there anything I can do to pressure him to keep his end of our agreement and market the application? I CAN market it myself, but it will be much much harder to do so.

I might just sign his agreement. I'm thinking that any agreement I sign is not enforceable since its is essentially binding me to use illegal hiring practices, so what the hell. But I worry cause he has a team of well paid lawyers and I have this forum. Lol.

 

[OHRoadwarrior]

Your disagreement is contractual, not discriminatory. If you have a contractual violation, take him to court if a solution is not reached.

 

[Steve5877]

Given this whole drama , I'm considering hiring a lawyer to help me through a few things. I need some to

a) review my LLC formation
b) review my LLC tax situation
c) advice me concerning my intellectual property issues

What type of lawyer should I be looking for?

 

[OHRoadwarrior]

A contract lawyer.

 

[tranquility]

Given this whole drama , I'm considering hiring a lawyer to help me through a few things. I need some to

a) review my LLC formation
b) review my LLC tax situation
c) advice me concerning my intellectual property issues

What type of lawyer should I be looking for?

A. Corporation attorney.
B. CPA
C. Patent attorney

But, each can be done by different people as well. Most any attorney can review formation and there are IP attorneys who are not "patent" attorneys. Any tax professional or even H&R Block can review your tax situation. It all depends on what your particular needs are and how much you want to pay.

 

[quincy]

You would want to see a copyright/trademark attorney to handle your IP issues. The IP attorney will want to review any contracts and agreements signed, and any text or emails exchanged, between you and the client. The attorney can best determine if copyrights to the software you developed were transferred in whole or in part to the client. With copyrights, and without an employer-employee relationship, you as creator of the software would generally retain all rights in the software absent a written and signed agreement to the contrary.

The IP attorney you see will also advise you on work other than the software (e.g., trademarks) that belong to your client and can determine if you hold any rights in this work. A personal review of the website will be necessary.

It does not appear you have a patent on your products so you will not want to add to your legal costs by hiring a patent attorney, by the way. They typically have far higher fees.

 

[Dandy Don]

Are you giving this working relationship with a Muslim priority over your business/livelihood? Can't you find another excellent person to temporarily take the place of the Muslim co-worker in order to continue the income/working relationship? You would lose any lawsuit.

Are you really considering signing the agreement without having it reviewed by an attorney? If you ask the uncle what his concerns/objections are about the Muslim, would you be willing to defend the Muslim against your uncle's most likely prejudices and biases?

The way your working agreement is now, uncle has most or all of the cards in his favor. At some point you should be drafting a contract THAT YOU AND YOUR ATTORNEY HAVE DRAWN UP THAT presents your terms, conditions, requirements for your working relationship with UNCLE for HIM to agree with and sign.

 

[quincy]

Finding another way to fund the company and concentrating on a way to attract clients beyond the single bigot would be the best way to keep the company afloat. I agree with LdiJ's earlier response.