CORE Support Services
New Member
- Jurisdiction
- California
We are a CA corp that manufactures, wholesale and retails a specific nutritional product. We have had a supplier in Colorado providing us a key raw material for over 2 years. This key material is of critical importance for several specific products. We have placed many orders for the same material and received all in a timely manner. We always prepay an invoice with a wire transfer and delivery is generally in 2-4 weeks. We do not have a contract. We only prepay the invoice.
In September 2018 we placed a phone order (with salesperson of 2 years). There was a delay of 3 weeks in getting us the invoice. The invoice was emailed in mid-October 2018 and clearly states a 10% discount that is specifically due to "Delay". This established an acknowledgment of delay in October. The $90,000 cost was promptly paid by wire transfer and delivery was planned for mid November 2018. This date came and passed with no communication from the supplier. We have documented emails and texts from us asking the status of the shipment. We have emails and texts stating a new delivery date was being scheduled for mid-December. This date came and passed. From that time, every week we have been told that there is a new delay of 1-2 weeks. There are over 50 emails and texts, all polite and professional, asking for status updates. We even flew from Los Angeles to their offices to meet face to face and were assured that the material would be delivered within days. That was nearly 2 weeks ago and my most recent reply yesterday was "2 more weeks".
The supplier is fully aware of the importance of this material for our products. I have emails explaining to the supplier that because of this delay we have lost clients, cancelled trade shows, delayed expansion and hiring, cancelled marketing campaigns, lost a key sales person, stymied growth, and more.
This supplier (a privately owned company valued at $150,000,000) has always claimed that the material that they provide is the very best quality that can be found in the USA. We have built our brand on this "top quality". In addition, $90,000 is a big investment for us and it is not possible for us to just go find another supplier without this money. I say these things because we are bound to and dependent on this supply order. I have fully explained, by email, text and phone conversations to one of the supply company founders, who got involved directly in this matter in December, that we are suffering greatly due this this unfulfilled order.
It is important to explain that the nature of the material provides no reasonable explanation for this delay. Any single day, the production manager could have slotted this order to be produced, filled and delivered. This supplier is the largest in their industry and fills orders every day. There have been no company-wide delays since we placed our order. Because of our growth and integrity I wonder if they see us as growing competition to their brand.
Given this explanation can we successfully sue? If so how likely can we find an attorney to take this on contingency? What is the standard split for contingency? Can we seek damages for losses in excess of the $90,000? Are emails and text admissible? Given the blatant inexcusable negligence is it likely to receive additional damages including punitive damages in excess of $1,000,000 (our 2017 sales $165K, 2018 $370K, expected 2019 were $800K-$1,400,000)? Do we have to sue in Colorado or can we sue in California? The company does not have a physical office in California.
Any guidance is greatly appreciated.
Jeff
In September 2018 we placed a phone order (with salesperson of 2 years). There was a delay of 3 weeks in getting us the invoice. The invoice was emailed in mid-October 2018 and clearly states a 10% discount that is specifically due to "Delay". This established an acknowledgment of delay in October. The $90,000 cost was promptly paid by wire transfer and delivery was planned for mid November 2018. This date came and passed with no communication from the supplier. We have documented emails and texts from us asking the status of the shipment. We have emails and texts stating a new delivery date was being scheduled for mid-December. This date came and passed. From that time, every week we have been told that there is a new delay of 1-2 weeks. There are over 50 emails and texts, all polite and professional, asking for status updates. We even flew from Los Angeles to their offices to meet face to face and were assured that the material would be delivered within days. That was nearly 2 weeks ago and my most recent reply yesterday was "2 more weeks".
The supplier is fully aware of the importance of this material for our products. I have emails explaining to the supplier that because of this delay we have lost clients, cancelled trade shows, delayed expansion and hiring, cancelled marketing campaigns, lost a key sales person, stymied growth, and more.
This supplier (a privately owned company valued at $150,000,000) has always claimed that the material that they provide is the very best quality that can be found in the USA. We have built our brand on this "top quality". In addition, $90,000 is a big investment for us and it is not possible for us to just go find another supplier without this money. I say these things because we are bound to and dependent on this supply order. I have fully explained, by email, text and phone conversations to one of the supply company founders, who got involved directly in this matter in December, that we are suffering greatly due this this unfulfilled order.
It is important to explain that the nature of the material provides no reasonable explanation for this delay. Any single day, the production manager could have slotted this order to be produced, filled and delivered. This supplier is the largest in their industry and fills orders every day. There have been no company-wide delays since we placed our order. Because of our growth and integrity I wonder if they see us as growing competition to their brand.
Given this explanation can we successfully sue? If so how likely can we find an attorney to take this on contingency? What is the standard split for contingency? Can we seek damages for losses in excess of the $90,000? Are emails and text admissible? Given the blatant inexcusable negligence is it likely to receive additional damages including punitive damages in excess of $1,000,000 (our 2017 sales $165K, 2018 $370K, expected 2019 were $800K-$1,400,000)? Do we have to sue in Colorado or can we sue in California? The company does not have a physical office in California.
Any guidance is greatly appreciated.
Jeff
