What to do about a wrongful service termination?

I own a pool service/maintenance company. I have a customer (community club/center) that are going to remodel the pool area and part of their equipment. They asked around for bids, including my own, and they decided on one company to do the work. But now, this company told my customer that in order for them to make any warranty valid, they needed to take over the service. So my service will be terminated because of that. Do I have a case against any of the two?

Asked on March 2, 2012 under Business Law, Arizona

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you had a contract for a specified or definite term, and the customer has breached the contract by terminating your service before the contract expired, you could sue the customer for breach of contract. Otherwise, you probably do not have a claim against either: if the customer canceled in accordance with the contract, then they did nothing wrong; and there is no law against putting in a bid for work or services that is based on the customer switching some other service to you, too. (For example, an insurer may offer you a discount on the automobile insurance you're seeking if you also change you home insurance to them; the cable company may offer you a bundle that gives you discounted cable TV and internet if you also give them your phone service; etc.)


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