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Bitter Result for Disgruntled Employment Agency

A disgruntled employment agency which launched High Court proceedings after its biggest client dropped it and moved its custom elsewhere has won only modest damages after its accusations of fraudulent misrepresentation were rejected.

The agency, which specialised in providing temporary workers, had started life as a micro-business, run from its owner’s home. However, it grew exponentially and won an exclusive contract to supply labour to a large manufacturing company.

The contractual relationship had continued for almost a decade before it was ended by the company, which decided to source temporary workers from another supplier. The agency’s response was to claim substantial sums allegedly due by way of debt as well as damages for breach of contract and fraudulent misrepresentation.

The latter claim was dismissed after the Court found on the evidence that there was nothing false about the representations made. The agency’s arguments in respect of unpaid fees and breach of contract were partially successful and a counter-claim brought by the company was rejected. The end result, however, was an award that was only a fraction of the six-figure sum the agency had claimed.