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California court will decide sponsorship contract dispute

Contracts are one of our best ways of cooperating across industries and jurisdictions. Most businesses and individuals like the system of contracts that keeps costs and risks down for large ventures. Fortunately, the system also comes with ways to resolve disputes.

A popular brand of performance beverage and related merchandise recently won a case in a California circuit of the U.S. District Court related to its intellectual property. The company claimed a firm with a similar name capitalized on it by also using their signature color scheme. As the court renders punitive damages to the defendant, the plaintiff is facing its own contract dispute challenge.

A champion sports competitor entered into a promotional deal with the beverage maker in which the athlete’s sponsorship would result in base payments and an annual media spend. The athlete’s case claimed that he was never paid any of the specified remuneration or expenses. The company counterclaimed that facts material to sponsorship were withheld, thus rendering the contract moot.

California is no stranger to contract disputes with heavy consequences. Another beverage maker is currently accused of discriminating against pregnant employees, violating employment contracts and the Golden State’s Family Rights Act. The employer claims the dismissals were related only to layoff needs for the company’s bottom line.

Parties to a contract dispute, whether they are plaintiffs or defendants, should have legal representation to increase their chances of success during the conflict. A lawyer can help negotiate with other parties, secure a settlement that avoids a court date or fight for a client’s interests in court to resolve a dispute.