Businesses can’t sue their way out of a failing grade, judge says

A federal judge in Orlando, Florida has ruled that the law firm Kaufman, Englett & Lynd cannot sue the Better Business Bureau of Central Florida Inc. under the Lanham Act after the firm claimed the negative publicity from the business review company led to a loss of clients.

News of the suit emerged this week when KEL sued the BBB over an "F" grade it received in 2011. According to the Orlando Sentinel, the BBB issued the failing grade because the law firm failed to address concerns expressed in a number of negative reviews published on the site. In its suit, KEL accused the BBB of false advertising and defamation, seeking an unknown amount in compensation.

The main focus of KEL's case against the BBB is the firm's belief that the rating system on which the entire company is based upon is not the unbiased, fair system that is advertised. Instead, the law firm claims the BBB's rating system "intentionally provides biased and inconsistent ratings of businesses, specifically favoring businesses that have chosen to pay money to and participate in the Defendants' own accreditation program," according to court documents.

KEL's argument against the reviews stems from the fact that much of the negative feedback came from clients involved in foreclosure and loan modification cases. The firm argued that, when dealing with these types of cases, defendants may let their emotions take over in the reviews while not having a full grasp of the legal system or why a case ended up how it did.

Like any business, a law firm needs to maintain its standards and deal with clients' complaints, regardless of whether or not the BBB is a factor. Like the BBB, any business looking to protect its rights is should seek out a Phoenix small business attorney in the event of legal action.

Categorised in: Business Law

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