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December 5, 2012

Amesbury Sports Park sues over 'zombie run' contract

(Continued)

While waiting for the contract, Event Partners said they continued to promote the races, securing national beer and Coca-Cola sponsorships, handling security bids for the upcoming races and preparing for the races to come in the fall. Event Partners said they kept pressing Reed Street about the contract throughout that time, but said they only heard excuses explaining the hold-up.

“At one point, Reed posited that perhaps their attorney was deceased,” the complaint says.

Right before the Amesbury race in May, Reed Street did produce a single-event contract for the Amesbury race only, the lawsuit says. Reed Street allegedly explained before the contract was signed that the deal was in addition to, and not in replacement of, the three-year exclusive deal previously agreed to but still unsigned.

The race went ahead and was a great success, but barely a week later, Reed Street allegedly called and terminated the relationship, according to the complaint.

After cutting ties with Event Partners, Reed Street went on to hold the rest of its scheduled races, which Event Partners said they had already helped them prepare for. Event Partners said it never received any compensation for its efforts in those races, nor did it receive full compensation for the races before the Amesbury one. It didn’t even receive payment for the Amesbury race itself until months later, the lawsuit says.

Event Partners alleges that even in the absence of a signed contract, there was a clear understanding between the two parties that there was an agreement in place.

“The defendants then breached every significant term in the contract between the parties causing losses, damages and lost economic opportunity to the plaintiff and resulting in the unjust enrichment of the defendants,” the lawsuit says.

Reed Street has denied all of Event Partners’ allegations except for the fact that the two companies had some business dealings and that Event Planners didn’t receive payment for the Amesbury race until a few months after the race.

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