A Vancouver-based travel company is suing Cossette Communication Inc., alleging that the advertiser botched a website upgrade.
Canadatravels.com, owned by Vancouver-based W.D. World Travels Ltd., filed suit May 4 against Cossette in BC Supreme Court over work allegedly carried out by Cossette's Vancouver office.
A heavyweight in Vancouver's advertising scene, Cossette's Vancouver office delivered the creative work for the BC Jobs Plan advertising campaign. According to documents obtained by Business in Vancouver under Freedom of Information legislation, the B.C. government had paid Cossette $1.417 million for that work as of January 27. (See "Vancouver agencies strike gold with BC Jobs plan ad campaign" – www.biv.com March 20.)
The suit contends that the plaintiff met with Cossette representatives in 2009 to discuss retaining the advertiser to upgrade Canadatravels.com. It alleges that at that meeting, Cossette stated that, if awarded the contract, it would:
- increase Canadatravel.com's revenue by 80%;
- reduce costs of using Google services by half or more;
- increase Canadatravels.com's social media presence; and
- improve Canadatravels.com's customer relations management program.
The suit states that the plaintiff "in reasonable reliance" on those representations, hired Cossette for the upgrade.
However, it claims, Cossette had misrepresented its experience and ability. It alleges that Cossette was negligent and breached its contract, causing the plaintiff losses.
"Cossette made changes to Canadatravels.com's website that virtually destroyed Canadatravels.com's business," the statement of claim alleges.
The plaintiff alleges that, in carrying out the website upgrade, Cossette caused Canadatravels.com losses by:
- launching the website late;
- launching the new website with "major functional problems," including blocking most travel packages from being booked;
- failing to improve the website's Search Engine Optimization (SEO) and making it worse;
- damaging Canadatravels.com's brand when customers tried to use its dysfunctional new site; and
- doing nothing or accomplishing nothing to raise Canadatravels.com's social media presence.
Canadatravels.com claims that its losses include:
- more than $250,000 for the work it contracted Cossette to do "but was never done as promised";
- more than $660,000 in "costs thrown away" for items such as lost advertising costs, in-house IT costs and consultants "attempting to correct Cossette's mistakes";
- lost profits since October 2009 and future profits; and
- loss of goodwill.
It is seeking damages for breach of contract, misrepresentation and negligence.
The allegations have not been proven in court.
James Carpick, a lawyer with Owen Bird LCand lead counsel for the plaintiff, told Business in Vancouver that Canadatravels.com has turned to the courts after attempting to resolve the dispute directly with Cossette.
"For some time before the pleading was filed, we tried to discuss with Cossette what the complaints were, and all of the details in the pleading and more were provided to Cossette through its counsel and we never received a substantive response," he said.
"At some point, if the other side ignores you, you either have to accept that or you go to court and try to compel the response that you're going to get."
Cossette declined to comment because the matter is before the courts.
