Sarasota County is seeing red after a company that promised to provide new jobs to the community apparently failed to live up to expectations. The Florida county is suing Sanborn Studios for breach of contract since the 117 jobs promised by the company have not materialized. Representation for Sanborn is calling the lawsuit "frivolous," and the business litigation case is proceeding to court.
Reportedly, a contract between the county and the studio guaranteed Sanborn would generate at least 117 jobs with an average salary of approximately $72,000 by September of last year. The contract included a provision stating the studio would pay the county back almost $3,000 for every job that was not created. The plan was to foster the film industry in the county, creating new jobs and opportunities for residents.
Sarasota County officials decided to sue back in June of this year after they say the jobs never came to light despite a $650,000 grant provided by the county to the company. Sanborn has shot back, saying it had indeed created close to 200 jobs within the county, and hundreds more by association. The case is being overseen in a local court but has not been resolved as of this report.
This story is a good illustration to remind Florida business owners that no matter how large or small the interests involved, all business entities are beholden to contracts signed in their name. Breach of contract applies to counties and film studios as much as to independent business owners. In this case, the court will likely decide which party, if any, is in breach, and award restitution based on that determination.
Source: mysuncoast.com, "Sarasota County sues Sanborn Studios for breach of contract", Gabrielle Tudin, August 5, 2014