Website Sales

I posted this in a different topic, but think it might get more replies here. I would appreciate your opinions.

I recently sold 2 large websites to a buyer. Our contract did not include a non-compete agreement. Recently, I decided to start a similiar website, and he is now accusing me of using the same code to create the new site, which as stated in the contract he receives rights to all the code included in the sale.

However, I did not use any of the same code, and in fact developed the site from scratch. He is threatening to sue me for breach for contract, does he have any grounds on doing so? What would you advice me on this situation? Any help is appreciated.

What did he say when you said:

cipo said:

However, I did not use any of the same code, and in fact developed the site from scratch.

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What is your state? His state?

cipo said:

He is threatening to sue me for breach for contract, does he have any grounds on doing so? What would you advice me on this situation? Any help is appreciated.

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Anyone can sue for anything. Whether or not he wins is a different story.

My state: New Jersey.
His state: Georgia.

When I mentioned to him that the code has been fully developed, and its even obvious the systems work completely differently, he still believes it is not.

I'm assuming the sale took place in your state. If he were to sue, he would have to do it in your state. I don't think he will travel that far, or hire an attorney there to do it. If he does, the burden of proof is on him. He has to prove it is essentially the same code.

Based on your posts only, he has no case against you. Now, there are three sides to every story: yours, his, and the truth. It will completely depend on what happens in court. But I don't think it will get that far.

Well, the sale was completed via mailing contracts back and forth, therefore, I'm unsure which state it would have to be filed in. Chances are, it will probably be in his.

Like you said, he will have to prove that it is the same code/engine developed. I was kind enough to send him screen shots of the database layout, which proved it to be different... however, he did not feel that was enough.

Have you contacted an attorney about this matter? Many offer free initial consultations. That can provide you w/ more info. Good luck.

Not yet. I posted hoping someone would be able to offer some assistance with this issue.