Asked in Business Law and Contracts for California

Q: Disputing a service charged but did not get the quality of service.

Hi there,

we are a company offering cloud services, and we signed up with a company that offers website attack protection to protect our "infrastructure". We are with this company for a year and a couple months, we renewed our contract couple months ago was asked to pay year upfront, after a couple month of services, they said we violated terms and won't refund. The service in question is around $75,000. Their reason was that we were "reselling" their services, but since the beginning til now we sell the same services to our customers and we never advertised or charge customers extra to provide "website attack protection" services to our customers. This came coincidentally after we made a year payment. Now the merchant has terminated our services and deemed it as a "damage to their business". Is there a case in court for this? The company knew that we were a cloud hosting company before we signed any contract, and nothing has changed.

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1 Lawyer Answer
Gerald Barry Dorfman
Gerald Barry Dorfman
Answered
  • Mill Valley, CA
  • Licensed in California

A: While an attorney will need to review the contract and the facts with you (including all communications you had with the company), it sounds like you have a good case to recover the money you paid, and possibly more if there are additional damages. How to go about this may be governed by the contract, and may include attorney fees.

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