A Midlothian paintball company has fired a lawsuit at its brokerage firm after losing its business to a competitor.
Paintball Authority filed suit in Richmond Circuit Court against Light-VanAusdall, a local brokerage and consulting firm, for allegedly breaching an agreement they entered three years ago.
In May 2008, the paintball company was looking to sell its Midlothian retail store. It sought out the Richmond-based firm to handle the sale, according to the suit.
The two companies made an agreement that gave Light-VanAusdall the right to sell Paintball Authority and all of its related businesses and entities, according to the suit.
Under their agreement, Light-VanAusdall was left in charge of protecting Paintball’s bank records, business accounting and other corporate information.
The suit states that Light-VanAusdall turned over Paintball Authority’s confidential information to prospective buyers and allowed them to inspect the company’s business facilities and observe the operation of the business. Light-VanAusdall had prospective buyers agree to a non-disclosure statement, according to the suit.
After a potential acquirer agreed to the non-disclosure, the potential purchasers withdrew their interest in Paintball Authority and opened a competing business within five miles of the company’s store location off Midlothian Turnpike. The suit doesn’t state where or when they opened the location.
Paintball Authority claimed in the suit that Light-VanAusdall failed to protect its business interests and private information. The suit also states that Light-VanAusdall breached its duty by allowing the buyer to open a business within the time period that was banned by the non-disclosure statement.
Paintball Authority claimed they lost business and had to shut down in August 2009 because of the competing business. The company is seeking $250,000 in damages for lost profits. The suit does not mention the name of the competing business.
Robert B. Smith, an attorney representing the firm, declined to comment, and Light-VanAusdall did not return a call Monday.
James Sitton of Henrico-based firm Corcoran and Sitton represented Paintball in the suit but could not be reached by press time.
Light-VanAusdall has not responded to the suit.
A Midlothian paintball company has fired a lawsuit at its brokerage firm after losing its business to a competitor.
Paintball Authority filed suit in Richmond Circuit Court against Light-VanAusdall, a local brokerage and consulting firm, for allegedly breaching an agreement they entered three years ago.
In May 2008, the paintball company was looking to sell its Midlothian retail store. It sought out the Richmond-based firm to handle the sale, according to the suit.
The two companies made an agreement that gave Light-VanAusdall the right to sell Paintball Authority and all of its related businesses and entities, according to the suit.
Under their agreement, Light-VanAusdall was left in charge of protecting Paintball’s bank records, business accounting and other corporate information.
The suit states that Light-VanAusdall turned over Paintball Authority’s confidential information to prospective buyers and allowed them to inspect the company’s business facilities and observe the operation of the business. Light-VanAusdall had prospective buyers agree to a non-disclosure statement, according to the suit.
After a potential acquirer agreed to the non-disclosure, the potential purchasers withdrew their interest in Paintball Authority and opened a competing business within five miles of the company’s store location off Midlothian Turnpike. The suit doesn’t state where or when they opened the location.
Paintball Authority claimed in the suit that Light-VanAusdall failed to protect its business interests and private information. The suit also states that Light-VanAusdall breached its duty by allowing the buyer to open a business within the time period that was banned by the non-disclosure statement.
Paintball Authority claimed they lost business and had to shut down in August 2009 because of the competing business. The company is seeking $250,000 in damages for lost profits. The suit does not mention the name of the competing business.
Robert B. Smith, an attorney representing the firm, declined to comment, and Light-VanAusdall did not return a call Monday.
James Sitton of Henrico-based firm Corcoran and Sitton represented Paintball in the suit but could not be reached by press time.
Light-VanAusdall has not responded to the suit.