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Roger, Attorney
Category: Business Law
Satisfied Customers: 31781
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I work at an auditing firm and our clients are being blackmailed

Customer Question

I work at an auditing firm and our clients are being blackmailed by their clients (large retailers like JCPenney) into hiring a different (more expensive) auditing firm. Our clients would be financing the audit themselves. Our structure, audit rules and bylaws are virtually identical to the competitor firm.

A similar situation occurred in our industry a few years back. There was a firm that was in the exact position we find ourselves in. Their recourse was a letter threatening legal action for deterrence of trade. It was successful. That's where the fiasco ended.

Could you direct me as to the legal grounds for recourse? Since our Board of Directors is telling me we have no case, I would like to be able to cite a ruling or statute, or violation that would help me gain support for hiring an attorney.

Your help is much appreciated and I hope to be able to work with you soon.

Evelina Sodt [email protected]
Submitted: 8 years ago.
Category: Business Law
Expert:  Roger replied 8 years ago.
If there is no contract guaranteeing your right to service the client for a certain period of time, the company can choose to go to the other company without any backlash from your firm.

IF the company is being blackmailed, that it would have to fight that battle - your auditing firm would have no standing.
Customer: replied 8 years ago.
Actually, most of the times, it's the other way around. Our potential clients want to join us and they are being told they cannot leave the expensive firm or they'd lose their retailer clients. This is making it impossible for us to compete -- we offer the same services, better price, and willing customers that are stopped in their tracks.
Expert:  Roger replied 8 years ago.
This would be something the busines client would have standing to sue over/contest, but not your company.