Texas Company Files Breach of Contract Lawsuit
Austin, TX (Law Firm Newswire) October 26, 2016 – A call center company has been sued by a Plano, Texas merchant services provider over an alleged breach of contract.
The lawsuit was filed in the U.S. District Court for the Eastern District of Texas, Sherman Division, on Aug. 11, by Pivotal Payments Inc. (Pivotal) against Taking You Forward LLC (TYF). Pivotal claims it is owed more than $109,000, including $25,000 in consequential damages.
“Consequential damages go beyond the terms of the contract itself, when the plaintiff claims that the defendant’s breach caused additional costs or lost profits,” commented Gregory D. Jordan, a business litigation attorney with the Law Offices of Gregory D. Jordan in Austin, Texas. “There are special pleading and proof requirements to recover consequential damages,” Jordan notes.
The complaint alleges that Pivotal, a national merchant services provider, entered into a contract whereby TYF would provide contact center services. Pivotal claims that it provided 30 days’ notice of termination of the contract, pursuant to its terms, and TYF was obligated to provide services for 30 more days. However, the lawsuit claims that TYF retaliated by stating that it would “ramp down” to a “skeletal contractual staff.” Pivotal claims that TYF’s alleged repudiation of its obligations would result in extended hold times damaging Pivotal’s business. Thus, Pivotal was forced to in-source its contact center services, resulting in consequential damages of at least $25,000.
Pivotal further alleges that upon termination of the agreement, TYF was obligated to return the balance of a security deposit paid by Pivotal in the amount of $84,093.75, but TYF failed to do so. Pivotal requests a jury trial.