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Contract disputes: Marketing company sues Yahoo Inc.

Posted by William J. Cook | Aug 24, 2017 | 0 Comments

When companies in Florida and elsewhere enter into business relationships with others, the contract stating the terms of the agreement can be exceedingly complex. Should the partnership come to an abrupt end, either or both sides may seek to regain invested interests, which could lead to heated contract disputes. Such matters can be highly-contested topics that require a close examination of the contract, potentially prompting a need for assistance in navigating the process.

A contract dispute between SCA Promotions and Yahoo Inc. recently resulted in a $4.4 million judgment in favor of SCA. The two companies entered an agreement in relation to an NCAA basketball tournament bracket contest, in which they were to provide a $1 billion prize to anyone who could pick the correct winner of every single game. However, another company decided to promote a similar contest with the same reward, and Yahoo apparently decided to end its agreement with SCA to join the other company.

Upon ending the previous arrangement, Yahoo reportedly demanded that SCA return its deposit, which was around $1.1 million. SCA subsequently decided to file a lawsuit against Yahoo for breach of contract, alleging it was owed close to $10 million in addition to the initial installment. While a court originally ruled in favor of Yahoo, the judgment was overturned in a federal appeals court, and it was determined that Yahoo was responsible for half the amount still owed to SCA.

Although both sides signed the contract, neither could agree on its interpretation. Contract disputes can be exceedingly intricate matters, and should a fallout occur, seeking assistance before entering litigation could be advisable. By speaking with an attorney with experience in the area, a business in Florida could obtain assistance in examining the terms of the agreement and subsequently pursuing the best outcome possible during legal proceedings.

Source: businessinsurance.com, “Marketing firm prevails in contract fight with Yahoo“, Judy Greenwald, Aug. 22, 2017

About the Author

William J. Cook

William J. Cook represents clients in matters involving business litigation and commercial and employment disputes, securities litigation, insurance, personal injury. Mr. Cook's peers have awarded him with the highest possible rating of AV-Preeminent* by Martindale-Hubbell, which speak...

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