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

Answered
  • 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

Answered
  • 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.

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