Royal Media Group filed a complaint against NetSol Technologies, which develops software for automobile leasing, for breach of contract on Monday in the Southern District of New York, claiming that NetSol failed to pay the contractual quarterly amount and over $200,000 in termination fees caused by the missed payment.
Royal Media Group (RMG), a business information and media company, and NetSol entered into the Multi Year Auto Finance Summit Agreement (the Sponsorship Agreement) “pursuant to which NETSOL agreed to pay Sponsorship Fees to RMG to return for designation as the sole ‘Diamond Level Sponsor’ for the Accelerate and Summit conferences for a period of five (5) years.” Following the Sponsorship Agreement, NetSol agreed to pay $139,723 per year, split into four installments, from in 2019 through 2023. RMG alleged that “NETSOL failed to pay the $34,930.75 due on or before March 1, 2020.”
RMG stated that as a result of the agreement, NetSol received benefits at conferences for being the Diamond Level Sponsor, including “premium advertisement placement,” complimentary registration, a premium booth, and the attendance contact list. After NetSol notified RMG that it would not comply with its Sponsorship Agreement obligations RMG requested to discuss the matter with NetSol in order to reach a solution, but NetSol did not meet with RMG.
Later, RMG informed NetSol that it had continued to violate their agreement and must pay the termination fee. The agreement states that failing to make a scheduled payment will constitute a cancellation and NetSol must pay a termination fee within 10 days. If NetSol cancels in 2020, the charge includes the total fee for 2020 and 15 percent of the balance for 2021-2023, which is $202,598.35. RMG said it contacted NetSol again to discuss these termination fees, but NetSol did not contact RMG in return or provide RMG with their requested proposal. NetSol also allegedly did not pay the requested attorneys’ fees pursuant to the agreement. As of July 2, NetSol notified RMG that it refused to pay the termination fee.
RMG accuses NetSol of breach of contract for failure to pay the agreed-upon amount due on or before March 1, 2020, and for failing to pay the termination fee owed after neglecting its previous obligations. In an effort to be paid for its owed work, and to find a new sponsor, RMG also argues that it is entitled to be paid on a quantum meruit basis.
The plaintiff has sought a declaratory judgment in its favor, an award for $405,196.70 for breach of contract and quantum meruit, an award for attorneys’ fees and costs, pre- and post-judgment interest, and other relief as determined by the court.
RMG is represented by Cohen Tauber Spievack & Wagner P.C.