Financial Firm Sues Over Business Contract Dispute
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Friday, April 24, 2015.
When California companies make a deal or engage in a transaction, both parties have typically agreed to specific terms. Failure of one of the parties to follow the terms of the business agreement can be damaging to the other company. When this happens, it often results in a business contract dispute.
A financial firm in another state reportedly purchased a client list from a former financial adviser. However, she is accused by the firm of continuing to advise the customers from the client list in apparent violation of the terms of the purchase contract. Moreover, the advice she purportedly gave her former clients is said to be in direct contradiction to the advice the company was giving to those same clients.
The Missouri company claims in a lawsuit recently filed in federal court that she is advising clients even after the former financial adviser was barred permanently from selling securities by a federal agency. It is further alleged that she is seeing her former customers in a new office location near the other financial firm's office. The woman has denied the allegations, and, now, it will be up to the court to determine whether the contract was breached and what damages the financial firm may be entitled to receive.
Anytime a California company enters into a contract with another party, it is expected that the parties will adhere to the contract's provisions. Sometimes, however, that does not happen, and a business contract dispute arises. If the parties are unable to come to a settlement on their own, a lawsuit may be filed seeking damages caused by the breach of the contract. If the court is satisfied that a breach did occur, it will then consider an award of damages, depending on the circumstances.
Source: ky3.com, "Company sues former investment advisor Nadia Cavner for breach of contract", Steve Grant, April 16, 2015