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.
3 Answers from Attorneys
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.
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.
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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