GoDaddy Sues For Breach Of Contract

On Friday in the Delaware District Court, GoDaddy Media Temple Inc. (GoDaddy), a web hosting company, filed a complaint against Anexio Data Centers, LLC, an IT service management company, for breach of contract over its purported failure to reimburse the plaintiff after it neglected to provide contractually obligated services.

According to the complaint, on June 15, 2016, the parties entered a Master Services Agreement (MSA), under which Anexio was required to invoice GoDaddy for the services used at least 30 days before the service it refers to. Anexio allegedly offered GoDaddy “a 10% discount for services associated with the data center in El Segundo, CA (‘LA Data Center’) in exchange for advance payment for the time period from March 1, 2019 through December 31, 2019.” GoDaddy sent an advance payment of $1,899,713 for the specified time period, however, GoDaddy proffered that on June 20, 2019, Anexio “was evicted from the LA Data Center and ceased to provide plaintiff with services, or access to the LA Data Center pursuant to the terms of the MSA, leaving a credit balance in the amount of $1,139,827.80 not including interest.” 

Furthermore, GoDaddy stated that Anexio acknowledged it owed GoDaddy for its failure to provide services as per the MSA, “and promised to offset, or otherwise provide full credit for the balance.” Regardless, GoDaddy averred that Anexio “failed to provide any offset, credit, or refund, and failed to provide the services that it promised.” Consequently, GoDaddy had to “contract with a third party to provide the same, or substantially similar services at the same location for the same time period in 2019 without receiving any credit for payment to” Anexio. Thus, GoDaddly claimed that Anexio breached the parties’ agreement.

The causes of action listed in the complaint for the aforementioned conduct are breach of contract, account stated, book account, and unjust enrichment. The plaintiff, represented by Cozen O’Connor, has sought an award for damages and fees.