Capital Confirmation sues competitor for breach

Brentwood company claims startup copied set-up in violation of terms of use

Everyone checks the box that says they agree to a Web site's terms of use, one of dozens of white lies told day in and day out to keep things moving along.

But lawyers — and companies — take those agreements very seriously, even if everyone else just pretends to care.

Capital Confirmation is suing LegalConfirm, a Maryland company, for breach of contract related to its terms of use, because a registered user of its Confirmations.com site set up a very similar operation.

"While a registered user of our service, and for a period of two years from the date of last login, you agree not to offer services or assist others in offering services that would compete in any way with the services offered by Capital Confirmation," the user agreement reads.

LegalConfirm's principal, Peyton Baran, was such a registered user of Confirmation.com. And Baran subsequently set up LegalConfirm, Capital Confirmation alleges in its filing with the U.S. District Court of Middle Tennessee, which markets services that are substantially similar to those offered by the local company.

Capital Confirmation is seeking injunctive relief and an undetermined level of damages.

Waddey & Patterson's Edward Lanquist is representing Capital Confirmation.