Brand
We mean business
Comprehensive legal services for businesses
in New Jersey and New York

COVID-19 Notice: In order to best serve you, while being mindful of your health and safety, we are available for consultations and conferences via telephone and video. We can arrange for documents to be prepared, reviewed, signed and exchanged electronically. We are ready to assist you with all of your legal needs.

We are open and ready to assist you. Go to our COVID-19 Updates page to see our latest statement on the crisis and a list of recent news and developments during this challenging time.
GO
Close
top-contextual
comprehensive legal services for businesses

New York printing company sues bank for breach of contract

Most small businesses rely heavily on their banks for growth and sustenance. Loans provide a business with capital to start or expand, and to help them manage the money they already have. If a bank changes the terms of its contract with a business, it can put the company in serious jeopardy.

New York City-based Color-Web, a division of 1800Postcards.com, has sued its lender for breach of contract and fraud for $13.8 million. The printing company alleges the bank reneged on a financial commitment to provide almost $4 million for new technology in 2007. The bank gave the printer a $200,000 deposit, after which Color-Web changed its business operations to accommodate the technology, a state-of-the-art, custom-built printing press. The company says the bank withdrew its financing as other printing businesses began to fail, and that the move was a violation of the agreement.

The company’s president says the decision to withdraw its financing had nothing to do with Color-Web’s performance. But because the business operations changes weren’t quickly reversible, it suffered material loss from the bank’s decision, company heads say. Color-Web has had to lay off almost 100 employees in the metro area since the funding was pulled and is currently considering closing.

“This lawsuit is not just about Color-Web’s claims against a bank,” the company president said in a statement. “It is in defense of the notion that when institutions prey on small businesses and innovators, the most reliable engines of job creation, they should be held accountable for damages that result.”

Color-Web’s lawsuit is a counter-claim to its bank’s attempts to recover the $200,000 deposit on the printing press. The bank’s lawsuit was filed in September 2011. With so many eyes on the actions of banks nationwide as they’re scrutinized for their lending restrictions, it will be interesting to see whether the company is successful in its litigation.

Source: PIworld.com, “Color-Web Launches Lawsuit Against Bank,” Feb. 24, 2012

Office Location

Dunn Lambert, LLC
East 80 Route 4 Suite 170
Paramus, NJ 07652

Paramus Law Office Map

Dunn Lambert, LLC
1745 Broadway, 17th Floor
New York, NY 10019
New York Law Office Map


Phone: 201-957-0874
Fax: 201-291-0140

Phone: 201-291-0700
Fax: 212-519-9804
Best Lawyers | Best Law Firms | U.S.News & world report | 2017

GET ANSWERS from a firm
with a sense of business.

Archives

Review US
FindLaw Network