Webb Law Group proudly takes you inside a real case that was handled by our firm. While names have been omitted for privacy purposes, we will approach the matter of a Breach of a Royalty Agreement Contract within the context of this real case. We will take you from the Complaint to the Conclusion, providing a segue from legal problem to solution, with the strong support of Webb Law Group’s team of attorneys and staff.
Complaint
In this case, the Plaintiff filed a complaint for Breach of Contract, as well as for Breach of the Covenant of Good Faith and Fair Dealing, Breach of Fiduciary Duty, Breach of Duty of Undivided Loyalty, Breach of Duty of Confidentiality, Fraud, and an Accounting.
The facts of the case are as follows:
- The Plaintiff was in the business of creating and marketing cell phone applications, or “Apps.”
- Defendant entered into a contract with Plaintiff to design an App that would assist telephone companies in tracking employee hours worked and other work site data.
- In exchange for building and marketing the App, Plaintiff was paid $20,000 and would receive an 8% royalty on any revenue generated by the App.
- Plaintiff delivered a completed App; however, as with all Apps, there was a need for constant updates and maintenance.
- Defendant refused to pay for the updates and maintenance. Additionally, the Defendant continued to want features added to the App that were not part of the original contract and, as a result, the business relationship between Plaintiff and Defendant broke down.
- In order to avoid paying the percentage specified in the royalty agreement, Defendant cut Plaintiff out of the business deal and created a second App. This second App did the exact same things as the first App, but was marketed to a wider audience.
- Based on the facts presented, Plaintiff believed that Defendant had created a second App that was in competition with the first App with the intent of keeping the money owed to Plaintiff from royalty agreement payments.
- The Plaintiff was seeking damages in the amount of $372,000.
Webb Law Group Takes The Matter to Arbitration
Webb Law Group was retained by the plaintiff in this matter and was able to secure a victory at arbitration. The arbitrator issued a judgment in the amount of $354,166 in favor of the plaintiff for the lost value of the royalty agreement payments.
The Plaintiff was happy with the result and with their decision to retain Webb Law Group as their representation.
Finding a Professional California Business Attorney
Webb Law Group is a reputable business law firm with experience in matters involving California law, including handling breach of contract cases. Having a reputable attorney by your side for these matters will help give you the best possible chance of a positive outcome in your case. If you feel you need legal representation, we are happy to review your legal needs and provide consultation and support where necessary.
For questions, or to schedule a consultation, contact us today at (559) 431-4888.