Chesapeake, VA asked in Arbitration / Mediation Law, Business Law and Civil Litigation for Virginia

Q: I have a potential dispute with an water equipment distributor.

I purchased a dealership from a national distributor. The cost of the business was $ 22,500.00 and I borrowed an additional 25,000 in startup capital. After starting the business, I discovered the distributor made several false claims. They claimed to be a national manufacturer. They are actually a reseller. they claimed to be in business since 1980. They incorporated in 2013. They claimed several national certifications - most of which are false. They claimed to have patented technology, but the patents is owned by another company on individual components that are commercially available. They claim a 15 year warranty on their product, while the components are only certified for 5-7 years by their individual manufacturers. They also made false claims about their number of sales and projected profitability. I need to find out if I have a case for damages and return of investment and the process.

2 Lawyer Answers

Timothy R Johnson

  • Criminal Law Lawyer
  • Berryville, VA
  • Licensed in Virginia

A: At face value, it sounds like you might have some valid claims. But the only way to find out with some real certainty and fully assess your legal options is to consult a business/commercial litigation attorney. Attorneys need to review all the pertinent documents, correspondences, marketing materials, and your own version of events to assess the strength of your case and what issues might be involved. I strongly encourage you to contact a local business/commercial attorney.

F. Paul Maloof

  • Estate Planning Lawyer
  • Alexandria, VA
  • Licensed in Virginia

A: Your claims for damages and rescission of the contract may depend on the terms and conditions as stated in the written contract you signed. In addition, you will probably need to have a very good CPA engaged as your expert witness if this matter goes to trial. I have worked with several CPAs on this type of case. I handle this type of case so if you want to engage me to act as your lawyer, let me know.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.