Most of us have had the experience of being stood up for a date or some other social interaction, possibly a meeting with a potential employer or customer.
In a dating context, according to psychologists, we may never forget the pain and disappointment of being left waiting for someone who never shows up or even bothers to call to explain why they’re not coming.
Being stood up demonstrates a lack of respect for the other person’s time and feelings. When someone agrees to a date or commitment, we expect them to keep their word, or at least communicate if they cannot make it.
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Now, let’s go one step further and ask: Could the results of the equivalent of being stood up form the basis for a lawsuit alleging breach of contract?
Scott encounters a frustrating scheduling issue
“Mr. Beaver, I am a fee-based CPA financial planner and work with clients on a per-hour basis. With an administrative assistant, I run my own shop and am usually booked at least two weeks in advance,” said “Scott” in our lengthy phone conversation.
“We budget from an hour to 90 minutes for an initial meeting with clients, and my hourly rate is $400 for general financial planning, but often a couple will be referred to our office to have their financial and estate plans reviewed.
“Depending on the complexity, this can run as much as $5,000 or more, and with older clients whose existing investment/estate plan was developed decades ago, we often need to draft a new one and refer them to an estate attorney as well.
“As there is a lot of competition in this field, making a client unhappy is costly,” he noted, adding, “Unless there is a very good reason, I try to avoid rescheduling appointments, as that tends to annoy people.”
A costly decision
“A few days ago, I got a phone call in the morning from a local talk radio show, asking if I could be on the show that day, following news articles about possible changes in inheritance taxes in the president’s One Big Beautiful Bill.”
Scott explained to the caller that it would be necessary for him to reschedule his afternoon appointments, but he could come to the studio to be on the show. He also stressed that he was counting on actually being on the show, since rescheduling clients was inconvenient for them.
He was assured that his guest spot on the show was a go and that he would get a follow-up call to officially set things up. He immediately asked his admin to rebook clients at their preferred day and time — including telling them why he was making this request.
“All but one client were OK with it,” Scott told me. “But the couple who needed the most work said that if I would do that to a client, then they would retain someone else. Right then, I lost over $5,000.”
Then Scott never got any follow-up calls about the guest spot. “I reached out to the people at the show more than once, and each time I was promised, ‘They will call you right back.’ Finally, I asked the station’s manager to directly call the show’s host and see what the heck was going on, and the host texted me, It is not for this week.
“This was like a Saturday Night Live comedy skit, with incompetent flakes working for the radio show host! I was so upset, you can’t imagine. These flakes kept on telling me, ‘Oh, yes, his producer will call you right back,’ not only wasting my time, but costing me over $5,000. Do I have any recourse at all against the station?”
Is the station in breach of contract?
This situation would make an ideal question for a bar exam: “Was there a contract for Scott to be on the air that the station breached? What are the station’s defenses, if any?”
No compensation was discussed — Scott would not be paid for his time on the air. Still, being on the show would mean a substantial benefit in free advertising for his professional services. And he would, in effect, be paying for the advertising simply by being in the studio to share his professional insight while potentially losing an afternoon’s income.
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If this ever found its way into court, the station would maintain that Scott assumed the risk that some clients would not agree to reschedule their appointment. So, no, it’s not a breach of contract.
How to turn the situation into a win-win
It is seldom a good idea to pick a fight with the press or media. I told Scott this can be turned into a win-win. He doesn’t need a lawsuit, and the radio station — especially the talk show’s staff — does not need to reveal their incompetence to the public.
I recommended he speak with the station’s general manager and propose being a guest on the air to discuss the need for couples to schedule a consultation with a good financial planner and how to find one. “Turn this into a win for the station’s listeners,” I said, “and the benefits will come back to you tenfold.”
Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.
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