Can a plaintiff seek compensation for a loss of customers due to bad merchandise?
Topic: Customer case
June 27, 2019 / By Foster Question:
I bought fruit wholesale in order to retail it. The seller didn't inform me that the fruit weren't fresh and were preserved in an unnatural form. I sold the fruit and many customers complained that it wasn't fresh. Worse than that, since than many customers switched to patronize my competitors. Can I seek compensation for the loss of customers?
I specifically asked the wholesaler beforehand when the fruit were picked and he lied to me. I'm a legal student and I am sure this is a breach of contract. My question is whether a loss of customers is considered a damage for which he is liable. Many courts have had different opinions on whether loss of goodwill is a damage for which one can seek compensation. Is loss of customers less of a claim than goodwill because one didn't lose an asset of any type or is it the same as goodwill?
Best Answers: Can a plaintiff seek compensation for a loss of customers due to bad merchandise?
Davy | 1 day ago
Short Answer: Maybe. Need more details.
Long Answer: Probably not. A loss of customers was probably not a reasonably foreseeable consequence of your loss (and you didn't seem to do due dilligence to properly mitigate your damages). Based on your statements, there is no clear (and justified) cause for action. No evidence of misrepresentation or breach of contract.
EDIT: If you're a law student, you need to learn to be more clear with your facts. Every case turns on its specific facts.
With your (edited) explanation, I can give more info. I'm assuming breach of contract can be demonstrated. (on your facts, however, this might be a misrepresentation as to the quality/condition of the merchandise (and not a breach of a term) and thus you might have problems proving breach of contract))
Damages for breach of contract should place you in the position you would have been in should the contract have been preformed. Loss of reputation constitutes actionable damages in a contracts case.
If the wholesaler was aware of the purpose of the sale (i.e. - retail sales), and he can be shown (on a balance of probabilities) that your loss of reputation (loss of customers) was either actually foreseen or reasonably foreseeable by the supplier, they can be held liable for your losses.
Your losses still have to be demonstrated (on a balance of probabilities) in order for you to succeed, and this is where you need witnesses/dispositions/testimonials. This is where many of these claims for damages fail. If losses can be demonstrated, but you are having difficulty quantifying them, the problem of quantification of damages can be resolved by the court.
There is a lot to think about here, but again, if you're serious about pursuing this, consult with a lawyer, or file in small claims.
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This depends on the specific terms of your contract and whether the opposing party had reason to know that you did NOT know the fruit wasn't fresh, but instead preserved. You may have a Breach of Contract action. You will need to produce proof of payment and the sales agreement to an attorney for evaluation of your case. If you don't have a written contract, you may be able to prove an agreement by showing (1) e-mails, (2) text messages, or (3) the advertisement you responded to when purchasing these goods.
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Originally Answered: Can a plaintiff collect money when the case is dismissed?
Your citation of the preclusion of any judgment for a landlord who has not registered with the clerk of the court under NJSA 46:8-26 is correct, and furthermore, 46:8-29 requires the landlord to provide all new tenants with a copy of said registration. The answer to your question seems simple. As the judge has made an offer to the attorneys in the case that they do not have to accept, one or preferably both of them should file a motion stipulating agreement with the offer provided the court's order notes that the landlord is in non-compliance with the law, and therefore the plaintiff is entitled to KEEP the returned money as abatement. Your friend should make sure it is spelled out, or it is a trick. Otherwise he should hold his ground and if need be appeal the court's decision for obvious procedural error and file a complaint with the judicial review board.