Legal Question in Business Law in New York

Re: drycleaners

Your customers' satisfaction is most likely your primary goal here. They entered into an agreement with you (not with your supplier) to dryclean their clothes, and the clothes are being returned damaged. Speaking as a customer, if my drycleaner damages my clothes I expect him/her to reimburse me for the cost of the damaged item (and some of those items can get pretty pricey). Your business insurance policy should cover at least some of this. Let your insurance carrier know of the situation before you pay anyone anything, then follow their advice and procedures PRECISELY.

You have entered into an agreement with that supplier (I hope it's in writing) to perform drycleaning services for you in a workmanlike fashion. Damaging customers' clothes is not workmanlike. Speak with your attorney (yes, spend the money and actually hire a lawyer for this one) to help you determine the extent to which you may be able to recover at least some of your costs.

Your insurance company can probably be enormously effective in recovering funds from your supplier that they have disbursed to pay your customers' claims. They may be willing to reimburse your out-of-pocket expenses based on their recovery of funds. Ask them.

Meanwhile, I'd find another supplier and let the current supplier know why you are pulling your business.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.