Jump to Navigation

Florida internet company sued by supplier

The internet has become an integral part of business in modern day commerce. For most companies, it is convenient to sell parts and components to purchasers worldwide. But the convenience of on-line selling can come with a downside. In the past, vendors could cultivate a relationship with business owners by setting up meetings or sending out salespeople. Today, however, individuals who make purchases over the internet may have little personal connection to the seller. Consequently, purchasers may feel less duty to pay to their vendors on time when payment is not required up front. In such a case, an old-fashioned breach of contract claim may be the only solution for vendors who have not been paid.

A recent business contract dispute provides an example of an internet business being sued for its failure to pay a vendor. Specifically, an online business based in Florida, known as Infinite Labs, LLC purchased nutritional items and ingredients from a vendor, known as Phytogenx Inc. In the lawsuit, Phytogenx alleges that it delivered the products over a period of seven months, but Infinite Labs has failed to pay invoices totaling $369,631.

Infinite Labs may have a legitimate reason for not paying the bill, such as insufficient funds. The claims and defenses will certainly be set forth at trial. While it might seem novel for a dispute to involve an online business, it is likely that these types of cases will become common as companies switch from a traditional model to an internet model. Whenever a company finds itself dealing with this kind of situation it may be a good idea to discuss the details with experienced legal counsel.

Source: The Pennsylvania Record, "Pa. nutrition products manufacturer files breach of contract claim against online Florida business," John Campisi, March 12, 2013

No Comments

Leave a comment
Comment Information

Contact Form

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

Welbaum Guernsey
2151 S. Le Jeune Road, Suite 200
Coral Gables, FL 33134
Phone: 800-509-4946
Fax: 305-441-2255
Map and Directions

Subscribe to this blog’s feed FindLaw Network