The owner of a telemarketing business contacted us to make a compensation claim for lost profit. He claimed he had lost a large amount of money because his services would disconnect in the middle of sales calls. The service provider had fixed the problem once, but it had come back and continued for almost a month.
We found that although he reported the fault the first time it happened, he did not call his service provider for some time to say that it was happening again. And as soon as he did, the service provider fixed the problem for good.
We also found that he had not taken any steps to minimise his loss, for example sourcing another temporary premises, or asking the service provider to set up a diversion for his inbound sales number.
He also could not show that the low sales figures were the direct result of the disconnections. The loss of profits had started at the same time as his company was trialling a new product, before the disconnections started, and were still ongoing even though the problem had been fixed.
Since he could not show that the service provider had caused the loss, and he did not try to minimise the loss, we could not accept his compensation claim.