Legal Question in Business Law in Illinois

Paid for services never received

We paid a company in Chicago for

internet file hosting services under

the agreement that since their

service was new, certain crticial

features would be available in the

near future. Those features never

became available and after

payment the company became

difficult to contact for support. The

project failed because of the

vendors inability to deliver on what

was originally promised. They have

since offered a partial refund, but

not the full $5000 we originally

paid. We spent additional monies

(~$1500) to have a web developer

build our site to be compatible with

this web host. I'd like to know how

to proceed.


Asked on 2/25/09, 9:50 am

3 Answers from Attorneys

Charles W. Field Charles W. Field, Attorney at Law

Re: Paid for services never received

Ordinarily, you must take legal action in the county where the proposed defendant resides. However, depending on the facts, you may be able to get jurisdiction over this IL company in GA. Consult with a local attorney.

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Answered on 2/25/09, 9:53 am
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Paid for services never received

You mention an agreement, so the specific language about what they were to provide is the key. You do not provide that information, and the entire contract would need to reviewed anyway. Such things as future availability of features generally need to be very specifically referenced as part of the contract and not just "maybes" or promises outside the contract. Even if you can file a suit here, you'll have to collect and adding a lawyer to the mix would likely eat into any money you do get. You will have to decide whether the additional funds are worth trying to go after, or whether it is best to take the offer, write it off as a lesson, and move on to your business. This is what often comes with using an out-of-state company, and especially one that apparently has no track record.

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Answered on 2/25/09, 10:32 am

Re: Paid for services never received

You need to have a lawyer review the agreement for the specific areas that the other company failed to provide and to also determine if there are any choice of law or forum provisions that would dictate what law applies and where you can file suit. Absent such a provision, you can proceed in an Illinois small claims court. However, the expense may not justify the returns unless there is a provision for attorneys fees in the agreement or you can prove fraud by clear and convincing evidence. Good luck.

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Answered on 2/25/09, 11:01 am


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