A scooter company based out of San Antonio is being sued in federal court for fraud and breach of contract. The company is being sued by an organization that picks up and charges electronic scooters from a variety of companies that operate throughout the country. They were planning to provide the same service for the defendant in Florida, but there were regulatory problems. The defendant denies all of the allegations made by the plaintiff.
Court documents show that the plaintiff in this case has argued that the defendant blatantly misrepresented its ability to operate in the state of Florida. Due to this fraud, the plaintiff claims that they have had scooters sitting in their warehouse taking up valuable space. One explanation for the defendant’s operational problems is the frequent turnover of executives.
The plaintiff in this case is requesting $75,000 in damages arising from nonpayment of bills and outfitting their warehouse. A different vendor that also did business with the San Antonio scooter company filed a lawsuit earlier in 2019. Despite these lawsuits, the company is expanding into new cities in Texas and has hired new executives. They announced that they had raised more than $4 million in 2019 so far.
Companies or individuals who are involved in a contract dispute with another party may want to seek legal recourse. A legal firm that practices contract law may evaluate the circumstances of the dispute and recommend a course of action. In some cases, the threat of legal action is enough to convince the other party to rectify the problem. In other cases, filing a lawsuit and going to court may be necessary.