Legal Question in Business Law in California
suppliers level of liability
We're a supplier of cabinets, the middle person messed up on the installation. The Owner of the property didn't like the installation, and most likely conspiring with the middle person to blame on cabinet quality. The middleman threats with lawsuit landing on them, would mean they'll have to sue us. The contract relating to us was only between us and middleman, nothing directly relating to the third party. Also contract states installation voids all warranty/guarantee. They've already installed 14 out of 31 ordered, before they halted the installation process.
What can we or should we do?
2 Answers from Attorneys
Re: suppliers level of liability
Well, if you haven't been sued yet, i.e. no service of summons and complaint, your economic best interest is to try to make sure that doesn't happen. It may be cheaper to pay a lawyer to write one or two letters and/or make one or two phone calls on your behalf NOW to explain why you aren't liable than to have to defend a suit in court, even if you have an excellent chance of winning.
This is a stage of a business dispute where showing that you have a strong defense in the best offense.
I'm not 100% sure about the merits of your proposed defense theory -- it would require close examination -- but superficially it sounds convincing and maybe you just need to have a lawyer assist you in calling the consumer's bluff.
If this were a tort case for product liability, it would be a different matter, but on contract principles your case may be sound.
Re: suppliers level of liability
Several questions up front:
1. Have you been paid for your work to date?
2. Have you followed mechanics lien statutes with respect to your cabinets?
3. What do you mean by "installation voids all warranty/guarantee?" The cabinets have to be installed, don't they? If so, why would that negate your warranty?
4. What, specifically, are they claiming to be the defect?
Before I could give you an answer to your question, I would at least need to know these things. Feel free to contact me.
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