same company name, who gets domain name?

I finished a site in April for a start up - 
The client did everything by the books;
filing a DBA and city business license . . .

Her business name wasn't available as a domain name
at the time we started
working on the site. . . it wasn't being used, but it wasn't available.
She went with something
more generic - and search engine friendly.

Today she informed me that her business name
is being used by another company as their domain name
as well as their business name. They are in the same county
and just in the next city.

I advised her to contact the local Small Business Association 
in our area and get some advice.

I've looked around for some help on the Web, but it seems most
laws apply to speculative use of domain names or registration
of domain names by competetion . . . this is a conflict of same business
name.

any ideas, thoughts or advice.

Thanks - lisa

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