QUESTION

Is it illegal to hire a promotional company to false promote?

Asked on Jan 01st, 2014 on Business Law - Virginia
More details to this question:
My company was hired to promote a New years Eve Mansion event in Virginia. We were hired to build a large amount of buzz and sell physical tickets for the event by a wealthy business man. He took care of all the planning and hiring of staff. We promoted exactly what was given to us. We ended up selling over 300 tickets and we placed over $7,000 in his hand before the event started. The event ended up gaining a huge back lash because the owner didnt hire a large enough staff to cover the amount of people that were coming. which resulted in hundred of paying costumers to be turned away. Now my brand is hurt critically and the owner doesnt want to take responsibility for my loss and future losses. Do i have a case?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
I'm assuming that the owner did not sign a contract with you which specifically laid out terms which he breached , such as representing that he would hire x number of staff.  You might be able to cobble together some sort of fraud claim if you can demonstrate that the owner misrepresented facts to you on which you reasonably relied in taking the job, and that you wouldn't have taken the job otherwise.  For example, did the owner lie to you about the number of staff that would be on hand?  If so, were you reasonable in relying on that statement or should you have checked it out?  Would you have turned down the job if you had known the true facts?  If the owner didn't misrepresent any facts to you on which you relied, I don't see how he had any duty to you.  If a New York lawyer runs off with $10 million in clients funds, she will cause much distrust of lawyers, and may cause me to lose business, but I don't have a claim against her - she had no duty to me, and anyway my damages are too remote to give me a valid claim against her. Even if you could prove a fraud, you're still going to have a hard time proving damages.  It will be difficult, and expensive in terms of expert's fees, to prove, beyond mere speculation, the money you will lose because of the damage to your brand.  Also, fraud damages are generally calculated based on the money you lay out because of the fraud, not lost profits, although there are ways to get around this rule. In short, I don't think you have a great case.
Answered on Jan 02nd, 2014 at 12:37 PM

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