Legal Question in Business Law in Illinois
Unfair and exorbitant charges to terminate the business relationship.
A company wants to terminate its relationship with its current supplier of exhibit services. To do this all of the company's properties must be moved from the current supplier's storage facility. The incumbant supplier is charging more than triple the standard amount for just the labor to pull out the various crates, skids and components and load them onto the trucks for the move. It can take one forklift operator up to two full 8 hr days to perform this task. Most estimates for this work, performed in a union shop in our area would run in the $3000-4000 price range. The trucks are contracted and paid for separately by the client, not the exhibithouse. The company is being billed $16,000 by the incumbant for this service and feels like it is being held hostage or being penalized for terminating the relationship. One year ago the client moved from another exhibithouse, which is considered to be the priciest in the area, and was charged $5000 to load out the same properties. Both shops are staffed by union labor and operate in the same general area. (Chgo suburbs) These excessive charges are certainly unethical. Are they illegal?
1 Answer from Attorneys
Re: Unfair and exorbitant charges to terminate the business relationship.
Hello. You certainly are being taken advantage of. Clearly, the storeagehouse owners are attempting to get what profits they can from the
company since they know that the business relationship is over. Under the circumstances,
I doubt if the Office of the State's Attorney
would want to consider this a matter for it
to step into. This situation is of a civil
nature and the company may want to consider filing
a lawsuit against the storeage house for breach
of contract/fraud, etc. Also, filing a complaint
for an injunction against the excessive charge
may be an option. This can be filed just like
any other lawsuit. I will be more than happy
to answer any additional questions that you might
have.
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